Beyond Steel And Shipping… Vizag on the cusp of a leap towards IT boom

Visakhapatnam: From a lack of opportunities and investments to the expansion of infrastructure and technology, Visakhapatnam is now unfolding a new technology narrative that speaks volumes about the ecosystem it has built in the recent past.

Not just one or two, but plenty of global IT companies find Visakhapatnam a ‘welcoming’ destination to invest, operate, and contribute to the ecosystem. Business analysts forecast that this is just the beginning.

Back then, after the state’s bifurcation, when the newly-carved Andhra Pradesh was deprived of Hyderabad, one of the most sought-after technology hubs, things were not in a great shape.

A decade later, the debt-ridden AP paints a different picture. Almost every other month, there is either an inauguration of a new company or a foundation stone is laid for an IT firm or work for a new project begins. The restlessness to make up for the lost years is quite apparent.

However, back in 2024, when the TDP-JSP-BJP took the reins of AP, the path was not easy. Things had to be revived from scratch. Mounting debts required greater attention. But the Chandrababu Naidu-led NDA government in Andhra Pradesh refused to budge and decided to turn setbacks into a wealth of opportunities.

Soon, Vizag is emerging as a major IT and AI hub, O. Naresh Kumar, Vice President of Rushikonda IT Park Association, expressed confidence. “With Infosys expanding and major investments from TCS, Cognizant and Google along with seven new data centres of 7-GW getting ready, the city promises a great future,” he mentioned.

Although a consolidated city-wide employment figure is yet to be ascertained, Naresh Kumar stated that Infosys alone reportedly increased its workforce by around 1,650. “The government is attracting IT majors through land incentives, new policies, infrastructure support, and an income tax holiday for data centres. In the next three years, more than 50,000 jobs are expected to be created as major campuses become operational in Vizag. However, the priority must shift to converting announcements into actual recruitment,” he emphasised.

Visakhapatnam’s distinct features include its long coastline, conducive infrastructure, and cosmopolitan culture. Beyond these, Visakhapatnam is endowed with umpteen advantages and ranked among the safest and most women-friendly cities in India in the National Annual Report and Index on Women’s Safety (NARI) 2025. No wonder, the location offers an established industrial base that attracts youth, especially the women workforce, from various parts of the country seeking employment.

As part of its industry-friendly incentive policy, the government allotted land to IT majors such as Tata Consultancy Services and Cognizant at 99 paisa per acre.

IT Minister Nara Lokesh has been vocal about the government’s intent to offer land to top IT majors at the same cost as TCS, provided they assure the creation of employment opportunities for local youth. “The Andhra Pradesh government is committed to revamping Visakhapatnam into the IT capital of the state and a new investment destination for global companies,” he reiterated earlier.

Over the past two-and-a-half years, the state government has focused on attracting investments in software development, IT-enabled services, cloud computing, Artificial Intelligence, data centres and digital connectivity. Introducing a supportive policy framework, facilitating land allotments, and offering incentives formed an important part of its strategy to attract technology majors.

Among the most significant announcements is Google’s proposed investment of $15 billion for a 1-GW hyperscale AI data centre in Visakhapatnam. The project is expected to bring together large-scale computing infrastructure, AI capabilities, data centres, renewable energy and international subsea cable connectivity. Initial projections have indicated the potential for 5,000–6,000 direct jobs, while 20,000 to 30,000 total employment opportunities.

Cognizant announced a major expansion in Visakhapatnam with a proposed investment of Rs.1,583 crore to establish an IT and ITES campus across 22 acres at Kapuluppada IT Hills. The project is planned in three phases and is expected to create more than 8,000 employment opportunities. The company outlined plans to begin operations from a temporary facility before progressing with its permanent campus, with the first phase slated for completion by early 2029.

Infosys is another major company linked to the city’s growing IT ambitions. The state government allotted 20 acres of land at Yendada Hill for a proposed IT and IT-enabled services campus for a nominal price of 99 paise under the LIFT Policy 4.0. Estimated to involve an investment of Rs.750 crore, the project aims to generate close to 7,000 jobs.

The data-centre sector is also drawing considerable attention. Sify Infinit Spaces Limited, a subsidiary of Sify Technologies, has been associated with a proposed investment of Rs.15,266 crore for a large data-centre project, with an expansion involving an additional 25 acres for the second phase of its proposed 500-MW facility.

CtrlS Datacenters has a proposed Rs.2,788.3 crore project for a 100-MW data centre at Rambilli in Anakapalli district that falls under the territory of undivided Visakhapatnam.

These investments strengthen the region’s capacity to support cloud computing, AI applications, enterprise technology and digital services

Other companies have also entered the city’s technology investment landscape. Infinx Technology Solutions has a proposed Rs.170 crore project at Kapuluppada IT Park, while Eclat Health Solutions proposed a project of Rs.50 crore at Rushikonda, Madhurawada.

With major proposals spanning IT services, AI, cloud computing and digital infrastructure, Visakhapatnam is building a technology ecosystem to contribute significantly to India’s technology economy.

However, what is crucial is determining how much of the announced projects and investments translate into operational facilities and sustained employment opportunities for the city’s workforce.

ABOUT THE AUTHOR

Rani Devalla

[email protected]

Rani Devalla is an experienced journalist specialised in a range of beats. From crime to politics, health to human interest, education to defence along with entertainment and feature stories, Rani Devalla, an accomplished writer with a passion for exploring diverse genres, has been reporting for the past 14 years. Serving as Bureau Chief of The Hans India in Visakhapatnam, Rani Devalla contributes to the organisation's editorial department through daily reporting, special stories and feature stories. After completing B.Com, Rani Devalla pursued Masters in Human Resource Management. Prior to joining The Hans India, Rani Devalla worked as a Principal Correspondent with The Hindu Group for six-and-a-half years. With rich expertise, she brings diverse perspectives to her reporting that makes her narratives stand out. When not immersed in writing, the journalist spends time reading, travelling and journaling.

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