India’s Ambitious AI Vision: The Rise of a Data City
On January 4, 2026, Nara Lokesh, the information technology minister for Andhra Pradesh, shared his insights during an interview in New Delhi. As India seeks to close the artificial intelligence gap with tech giants like the US and China, Lokesh is at the forefront of a transformative project aimed at establishing a "data city" that could redefine the nation’s digital landscape.
"The AI revolution is here, no second thoughts about it," Lokesh emphasized. With Visakhapatnam, known as Vizag, at the center of this initiative, the state has attracted a whopping $175 billion in investment agreements. Notably, Google plans to build its largest AI infrastructure hub outside the United States, while a joint venture involving renowned firms like Reliance and Digital Realty is also preparing to invest in a significant AI data center.
Traditionally recognized for its cricket matches, Vizag is now being positioned as a key player in global tech, thanks to planned submarine internet cables linking India to Singapore. Lokesh’s vision includes a sprawling 100-kilometer ecosystem that will not only enhance data connectivity but also attract major tech investors.
Offering land at an incredibly low cost of one US cent per acre, Andhra Pradesh is determined to welcome businesses focused on AI infrastructure. "I’m chasing the companies that manufacture servers and cooling systems—they’re vital for our data centers," Lokesh stated.
As India climbs the ranks in AI capability, now sitting above South Korea and Japan, the investments continue to roll in. Microsoft recently announced a landmark $17.5 billion investment aimed at bolstering the country’s AI infrastructure—a move that reflects the growing interest among tech giants in tapping into India’s vast market of over one billion internet users.
While there are concerns about whether these data centers will generate substantial employment, Lokesh argues that every industrial revolution has historically created more jobs than it displaced. He firmly believes that the jobs created will outweigh any drawbacks.
With ambitious plans for energy management and sustainability—including tapping into surplus water from monsoon runoff—Lokesh is optimistic about the future. He draws inspiration from China’s rapid socio-economic growth, using it as a model to lift people out of poverty through tech innovations.
"I’ll ensure we execute these projects at an unprecedented pace," he concluded, reflecting the urgency and excitement surrounding this pioneering endeavor.
As India stands on the brink of an AI-driven future, initiatives like the one headed by Lokesh could serve as a catalyst for profound change. For those looking to stay updated on similar breakthroughs or explore opportunities in this evolving landscape, connecting with platforms like Pro21st could be invaluable. Embrace the future today!
