Mumbai, May 05: The Government of Andhra Pradesh will tomorrow mark a significant milestone in its industrial and digital infrastructure journey with the groundbreaking of Carrier’s advanced chiller manufacturing facility at Sri City.
This investment represents Andhra Pradesh’s strategic pivot from being a destination for data centers to becoming a global hub for manufacturing the critical components that power the digital economy.
Andhra Pradesh is rapidly emerging as one of India’s most significant data center destinations, anchored by large-scale global investments and a forward-looking policy framework. In recent weeks alone, a landmark $15 billion Google AI data center hub—one of the largest digital infrastructure investments in India—has broken ground in Visakhapatnam, with a planned 1 GW hyperscale capacity . This is complemented by proposals such as Reliance Industries’ ₹1.6 lakh crore 1.5 GW data center cluster, alongside multiple commitments from global and domestic players. With an overall pipeline estimated at over ₹6 lakh crore and a targeted capacity of ~6 GW, Andhra Pradesh is positioning itself well ahead of the current national capacity, building a scale that few regions globally can match . This momentum, backed by progressive policies such as dedicated power frameworks for data centers, is transforming the state – particularly Visakhapatnam – into a premier hub for AI, cloud, and digital infrastructure.
Carrier’s entry further strengthens this ecosystem – bringing advanced cooling technologies that are indispensable for next-generation data centers, AI infrastructure, and high-performance computing environments.
From Data Centers to a Full Manufacturing Ecosystem
Andhra Pradesh has already established itself as a leading destination for large-scale data center investments, with a rapidly growing pipeline of AI-native facilities. However, the state’s vision goes beyond hosting these assets.
The focus is now on building a complete value chain – from data center infrastructure to component manufacturing, including:
– Cooling and thermal management systems
– Power and energy management solutions
– Precision engineering components
– Electronics and control systems
By integrating manufacturing with digital infrastructure, Andhra Pradesh aims to create a self-sustaining ecosystem that reduces import dependency, boosts exports, and positions India as a global leader in data infrastructure manufacturing.
Sri City: The Nucleus of the Cooling & Manufacturing Cluster
Sri City’s evolution into a major HVAC and electronics hub makes it central to this strategy. With:
– ₹12,000 crore invested in cooling and AC manufacturing
– 25,000 direct jobs created in the segment
– A strong supplier base contributing ₹4,600 crore in investments
– Nearly 60% projected share in India’s AC production by 2027
the ecosystem is already demonstrating scale, depth, and global competitiveness.
Carrier’s facility will further catalyse supplier networks, innovation, and export-oriented manufacturing, reinforcing Sri City’s position as a critical node in the global supply chain.
Quote from Shri Nara Lokesh, Hon’ble Minister for IT, Electronics & Communications, and HRD
“Andhra Pradesh is not content with being just a host for data centers – we are determined to become the engine that powers them. The groundbreaking of Carrier’s facility at Sri City marks a defining moment in our journey to build a full-stack data infrastructure ecosystem – from energy and data centers to the manufacturing of the components that sustain them. With world-class industrial ecosystems like Sri City, strong policy support, and our unwavering focus on speed and scale, Andhra Pradesh is positioning itself as a global hub for next-generation manufacturing and digital infrastructure.”
A Strategic Leap Forward
This curtain raiser sets the stage for a landmark event that signals Andhra Pradesh’s intent to lead not just in digital infrastructure, but in industrial innovation aligned with the future of AI, cloud, and data economies.
The Carrier groundbreaking is expected to catalyse further investments, deepen global partnerships, and accelerate the state’s journey toward becoming India’s data center capital—and the manufacturing backbone behind it.
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