Nara Lokesh Champions Andhra’s Data Centre Push Amid India’s AI Surge

India’s data centre sector is undergoing a dramatic transformation, with capacity projected to quadruple by 2030. This rapid expansion, highlighted in a recent ANAROCK Research & Advisory report, sets the stage for Andhra Pradesh IT Minister Nara Lokesh’s strong advocacy for the state’s ambitious data centre plans.

The numbers are striking: India currently operates over 1.8 GW of data centre capacity across 164 facilities, occupying nearly 27 million sq ft. By 2030, ANAROCK forecasts this will surge past 6.7 GW, with the total footprint reaching approximately 101 million sq ft. The driving forces are clear—artificial intelligence, cloud computing, and a surge in digital consumption, from UPI transactions to streaming platforms and data localisation mandates.

AI’s role in this growth is particularly significant. The report notes that AI workloads require 10 to 20 times the power density of traditional servers, creating unprecedented demand for large-scale computing infrastructure. This has prompted global technology giants and Indian conglomerates to pledge more than $300 billion toward AI and cloud infrastructure in India. Among the most prominent investments is Google’s $15-billion AI and data centre campus in Visakhapatnam, described by ANAROCK as the largest such facility in Asia. The partnership between Google and Adani in Visakhapatnam positions Andhra Pradesh as a key player in India’s emerging AI infrastructure landscape.

Hyderabad offers a glimpse of what a mature data centre ecosystem looks like in the Telugu states. With 12 operational data centres, 2.4 million sq ft of occupied space, and 178 MW of IT capacity, the city benefits from a skilled technology workforce, robust fibre connectivity, low seismic risk, and an established infrastructure ecosystem. These factors have enabled Hyderabad to attract further expansion and investment.

Within this context, Nara Lokesh has defended Andhra Pradesh’s aggressive data centre strategy in the state Assembly. He outlined a vision for a 6.5 GW data centre ecosystem in Andhra Pradesh, with an estimated annual water requirement of about 3 TMC based on current technology. Lokesh addressed concerns about resource allocation by stating that water for the data centres would be sourced from industrial allocations via Polavaram and related infrastructure, ensuring that drinking water, agriculture, and industrial needs remain distinct. He argued that the state should build the necessary infrastructure to harness the large volumes of Godavari water that currently flow into the sea, rather than forgoing a transformative technology opportunity due to solvable resource concerns.

Lokesh’s stance is not without controversy. The ANAROCK report itself cautions that resource challenges—especially power and water—cannot be ignored. Power is identified as the single most critical factor in data centre site selection, with developers requiring robust grid capacity, dedicated high-voltage supply, and reliable electricity. The report also highlights the growing importance of long-term solar and wind power arrangements. Water, too, is a major consideration, with cooling towers requiring about 25.5 million litres per MW per year. Coastal locations like Visakhapatnam have an advantage in water availability, but the challenge lies in delivering industrial water to facilities without impacting drinking water or agriculture.

Industry insiders are divided. Optimists see Andhra Pradesh’s proactive approach as a way to secure a leadership position in India’s digital economy, especially given the scale of investments from global players like Google and Adani. They point to the state’s recent success in software exports, which have more than doubled in two years, rising from ₹2,325.70 crore in 2023-24 to an estimated ₹5,057.15 crore in 2025-26. This growth, reported earlier this month, suggests a strong foundation for further digital infrastructure development.

Skeptics, however, warn that execution will be critical. The ANAROCK report makes clear that Andhra Pradesh must demonstrate its ability to deliver industrial water and power at scale, while also building out the necessary generation, transmission, storage, and backup infrastructure. Failure to do so could undermine the state’s ambitions and intensify local concerns about resource allocation.

For Tollywood and the broader Indian entertainment industry, the data centre boom has direct implications. The expansion of AI and cloud infrastructure supports the growth of OTT platforms and digital content production, both of which are increasingly central to the Telugu film industry’s business model. As data localisation and streaming demand rise, robust data centre infrastructure in Andhra Pradesh and Telangana could provide a competitive edge for local content creators and distributors.

Nationally, India’s data centre surge is poised to reshape the digital landscape, attracting further investment and enabling new applications in AI, fintech, and entertainment. The coming months will test Andhra Pradesh’s ability to translate policy ambition into operational reality, with the success of projects like the Google-Adani campus in Visakhapatnam likely to influence future investment decisions across the country.