Digital Connexion to Invest $11 Billion in AI Data Centre in Visakhapatnam

In a landmark announcement that signals India’s rapid rise in the digital and artificial intelligence (AI) economy, Digital Connexion has unveiled plans to invest a massive $11 billion in an advanced AI-powered data centre in Visakhapatnam, Andhra Pradesh. This will be one of the largest AI data centre investments in India’s history, marking a transformative step for the nation’s cloud ecosystem, digital economy, and AI infrastructure.

The project highlights the growing importance of India as a global destination for AI development, hyperscale data processing, and cloud innovation. It also places Visakhapatnam firmly on the world map as an emerging tech city capable of hosting cutting-edge digital infrastructure.


What Is Digital Connexion?

Digital Connexion is a joint venture between:

  • Brookfield Asset Management (Canada)
  • Reliance Industries / Jio Platforms (India)
  • Digital Realty (USA), one of the world’s largest data centre operators

The collaboration brings together global expertise in:

  • hyperscale data centres
  • cloud hosting
  • AI compute infrastructure
  • high-performance digital networks
  • renewable-powered campuses

Digital Connexion was formed with the objective of transforming India into a global cloud and data innovation hub.


The $11 Billion Visakhapatnam AI Data Centre: Key Highlights

1. One of India’s Largest AI Data Infrastructure Projects

The $11 billion investment will fund a large-scale, AI-ready data centre campus capable of supporting:

  • AI supercomputing
  • high-capacity cloud storage
  • neural network training
  • green energy-powered operations
  • hyperscale enterprise computing

2. Multi-Year Construction and Expansion Plan

The project will roll out in phases over several years, with infrastructure designed to scale rapidly as AI demand accelerates.

3. Strategic Location

Visakhapatnam is emerging as a major IT and innovation hub due to:

  • strong state government support
  • upcoming industrial corridors
  • deepwater port connectivity
  • talent pool from engineering institutions
  • large land availability for hyperscale campuses

4. Global AI & Cloud Compute Capabilities

The facility will support cutting-edge AI workloads, enabling:

  • large language model (LLM) training
  • enterprise AI development
  • 5G and IoT cloud processing
  • edge computing applications
  • data-heavy R&D projects

5. Powered by Renewable Energy

Digital Connexion aims to run most operations using green power, supporting India’s push for carbon-neutral data centres.


Why Visakhapatnam? Strategic Advantages

Visakhapatnam is being positioned as the “Next Tech Capital” of Andhra Pradesh due to several advantages:

1. Strong Government Support

The Andhra Pradesh government is aggressively promoting technologies like:

  • AI
  • machine learning
  • cloud computing
  • semiconductor manufacturing
  • data centres

This investment aligns with the state’s digital transformation agenda.

2. Stable Infrastructure

The city offers:

  • strong fiber connectivity
  • robust transportation links
  • growing IT parks
  • reliable power infrastructure

3. Availability of Land

Hyper-scale data centres require large land parcels. Vizag provides:

  • cost-effective land
  • proximity to key grid networks
  • strategic location for coastal connectivity

4. Skilled Workforce

Engineering talent from Andhra Pradesh is in high demand across global tech firms. The new centre will create thousands of direct and indirect jobs.

5. Disaster Resilience Planning

Modern data centre campuses include:

  • seismic-resistant structures
  • flood control systems
  • multi-layered security
  • redundancy at all critical levels

With advanced planning, Visakhapatnam is ideal for safe and scalable operations.


Impact on India’s AI Ecosystem

This massive investment is expected to significantly boost India’s AI, tech, and digital innovation capacity.

1. Enhanced AI Compute Power

India currently faces a shortage of high-performance computing infrastructure for AI. The new facility will help:

  • accelerate AI model development
  • support startups
  • enable enterprise AI adoption
  • reduce dependence on foreign cloud providers

2. Boost for Digital India Mission

The data centre aligns with key government initiatives:

  • Digital India
  • National AI Strategy
  • Make in India (for digital infrastructure)
  • Startup India

3. Strengthening India’s Global AI Competitiveness

Countries like the US, UAE, Singapore, China, and Japan have heavily invested in AI hardware farms. With this new data centre, India strengthens its place in the global AI revolution.

4. Lower Latency for Indian Users

Hosting AI models and cloud data locally means:

  • faster response times
  • lower latency
  • improved digital services for businesses and consumers

5. Data Sovereignty & Security

Storing data within India ensures better:

  • compliance with local laws
  • user data protection
  • enterprise privacy

Economic Benefits for Andhra Pradesh

The $11 billion investment will be a major economic catalyst for the region.

1. Job Creation

The project will generate:

  • thousands of construction jobs
  • high-skilled IT and engineering jobs
  • jobs in electricals, cooling, and facility management
  • opportunities for local vendors and small businesses

2. Boost to Local Industries

Industries that benefit include:

  • real estate
  • energy
  • telecom
  • engineering
  • logistics

3. Increase in Startup Activity

With robust cloud and AI infrastructure, startups in:

  • fintech
  • healthtech
  • edtech
  • cybersecurity
  • robotics
  • logistics

will develop faster and more efficiently.

4. Higher Foreign Investment

Large global companies may now consider Andhra Pradesh for:

  • AI hubs
  • R&D centres
  • innovation parks
  • cloud development

Technological Edge: What Makes This Data Centre Special?

1. Designed for AI Supercomputing

The Visakhapatnam campus will house:

  • GPU clusters
  • high-bandwidth memory systems
  • advanced AI training frameworks
  • cloud accelerators

2. Green Cooling Technologies

Using cutting-edge cooling mechanisms such as:

  • liquid immersion cooling
  • energy-efficient HVAC
  • heat reuse systems

3. High-Speed Fiber Connectivity

The centre will connect to:

  • national fiber backbones
  • global subsea cables
  • multi-cloud network infrastructure

4. Robust Security

Multiple layers of protection will safeguard data:

  • biometric access
  • 24/7 surveillance
  • Tier-III or Tier-IV facilities
  • redundant power systems

India’s Push Toward Becoming an AI Powerhouse

With this new $11 billion commitment, India joins the league of nations heavily investing in AI infrastructure. The government, private sector, and global partners are collectively working to:

  • expand cloud capacity
  • build AI-specific clusters
  • train millions in AI skills
  • attract multinational tech companies
  • establish India as a digital manufacturing & AI innovation hub

The Vizag project is a major milestone in this journey.


Conclusion

The announcement of Digital Connexion’s $11 billion AI data centre in Visakhapatnam is a historic development for India’s technology landscape. It signals confidence in the country’s digital future, strengthens AI capacity, and positions Andhra Pradesh as a leading global AI destination.

From boosting AI innovation to generating employment and transforming regional economies, this project is more than just a data centre—it is a powerful step toward India’s emergence as a world leader in artificial intelligence and advanced cloud technology.

As construction begins and phases roll out, Visakhapatnam is set to become home to one of the largest, greenest, and most advanced AI data centres in Asia, ushering in a new era of digital transformation.