Reliance-Backed Digital Connexion To Build $11 Bn Vizag Data Centre

In what is potentially one of the largest data centre investment commitments announced in India so far, Digital Connexion, the joint venture of Brookfield Asset Management, Reliance Industries and Digital Realty, will invest about $11 Bn in Andhra Pradesh by 2030 to build a 1 GW AI-native data centre campus in Visakhapatnam.

The company has signed an MoU with the Andhra Pradesh Economic Development Board to acquire 400 acres for the project. The upcoming campus will be designed specifically for high-performance computing and large-scale AI workloads, targeting hyperscalers, cloud providers and large enterprises.

Digital Connexion said the Visakhapatnam cluster will be powered by renewable energy and use advanced cooling and efficient design systems to lower energy consumption. The facilities will include high-density racks, redundant power feeds and robust substations to support next-generation AI infrastructure. The JV already operates a campus in Chennai and is building another in Mumbai’s Chandivali area. 

The announcement comes as India becomes a key battleground for global AI infrastructure. Surging adoption of generative AI has pushed up demand for data centres that can support heavy computing workloads. AI-focused DC infrastructure in India is now a $17.7 Bn market, growing nearly 27% annually.

India Becomes A Hotspot

India is currently being evaluated as one of the few global locations capable of hosting the ultra-large AI training hubs required for its next-generation models, driven by local demand, geopolitical considerations, and the IndiaAI Mission, which mandates that GPUs used for sovereign AI must reside within India.

Hyperscalers like Google, Microsoft and Amazon are already building some of the country’s largest data centre campuses as AI workloads surge. Google has announced a $15 Bn investment to build a gigawatt-scale AI and data centre hub in Visakhapatnam in partnership with AdaniConneX and Airtel, marking one of its biggest global infrastructure investment commitments. 

Microsoft, after laying out a $3 Bn expansion plan for Azure Cloud and AI capacity in India, has also bought 48 acres in Hyderabad to scale its data centre footprint beyond its existing campuses in Pune, Mumbai and Noida. 

Meanwhile, Amazon Web Services, which committed $12.7 Bn between 2023 and 2030 for cloud and data centre infrastructure in India, continues to expand across Hyderabad, Mumbai and Delhi NCR with both hyperscale cloud zones and edge locations to serve enterprise and AI workloads.

Indian Conglomerates Chase AI Data Centres 

Alongside these global majors, homegrown operators are stepping up their bets. Yotta, part of the Hiranandani Group, is rapidly expanding its network after launching its flagship Yotta NM1 campus in Navi Mumbai and its Noida and GIFT City facilities, and is also hosting NVIDIA GPU clusters to offer GPU-as-a-service for AI training.

AdaniConneX, the Adani Group’s JV with EdgeConneX, is developing a nationwide network of AI-ready data centres in Chennai, Noida, Hyderabad and Navi Mumbai, and is a partner in Google’s Vizag project as well. 

Reliance, via its digital infrastructure initiatives and now via Digital Connexion, is building large campuses in Chennai, Mumbai’s Chandivali, and soon Visakhapatnam, targeting hyperscalers and enterprises seeking colocation and AI-capable environments. 

The Hiranandani Group, in addition to its subsidiary Yotta, is also scaling its broader DC-linked real estate and energy infrastructure pipeline to support high-density facilities across Tier I and II regions.

Meanwhile, OpenAI is reportedly exploring an India-based 1 GW data centre under its massive $500 Bn ‘Stargate’ project, co-led by SoftBank’s Masayoshi Son.