Even as Amaravati, the capital city of Andhra Pradesh, continues to dominate headlines with the State government’s ambitious plans to develop it as one of the world’s top five capital cities, the City of Destiny, Visakhapatnam, has simultaneously emerged as a significant presence on the global investment map.
Vizag has been attracting large-scale investments, not only in the form of mega data centres by global technology giants such as Google and others, but also through the establishment of leading IT companies, including TCS, Cognizant and several multinational firms.
With the State government placing special emphasis on developing Visakhapatnam as a major IT and data centre hub, companies are increasingly lining up to establish their operations in the port city.
This sustained momentum has transformed Vizag into a preferred destination for technology-driven investments, further reinforcing its role as a key growth engine for Andhra Pradesh’s economy.
Beyond information technology, Visakhapatnam is witnessing rapid development across infrastructure, tourism, logistics and allied sectors, underscoring its all-round growth.
At the same time, the government is pursuing a balanced regional development strategy, with Amaravati envisioned as the administrative and financial capital, Visakhapatnam as the IT and economic capital, and the Rayalaseema region positioned as a horticulture hub.
While the government is expediting action plans to address the concerns of Amaravati farmers and accelerate the capital city’s development, it has also ensured that Visakhapatnam continues to receive focused attention.
The strategy seeks to promote soft industries and knowledge-based sectors in Amaravati, while positioning Vizag as the technology and investment powerhouse of the State. Industrial growth is not confined to Visakhapatnam alone. Adjacent districts such as Anakapalli are also witnessing a rise in industrial activity.
Meanwhile, works related to the Bhogapuram International Airport — a key infrastructure project expected to significantly enhance regional connectivity and attract investments — are progressing steadily. During his recent visit to Visakhapatnam, Minister for HRD and IT Nara Lokesh stated that the city would be developed as the growth engine and economic capital of Andhra Pradesh, aligned with a long-term vision of transforming the State into a trillion-dollar economy by 2047.
On the other hand, development works in the Amaravati capital city are gradually gaining momentum towards the end of 2025 and are expected to be taken up at a much faster pace in the coming year.
Officials of the Andhra Pradesh
Capital Region Development Authority (APCRDA) said that although rains affected certain works, jungle clearance and dewatering of raft foundations for the iconic tower have been completed, and tenders for several key projects have already been finalised. Chief Minister N. Chandrababu Naidu, while acknowledging that Amaravati’s construction activities are yet to gather full momentum, recently asserted that the projects would be fast-tracked and the capital would be developed into a world-class city.
Significantly, Amaravati recorded a major milestone over the past year with the laying of foundations for the head offices of 15 financial institutions, including 13 banks and two insurance companies. With the completion of these buildings and the commencement of operations, Amaravati is poised to emerge as a major financial hub.
Officials said it is clear that Amaravati is set to draw global attention in the new year with the launch of the Amaravati Quantum Valley project, along with a series of major infrastructure initiatives. Together, the twin growth engines of Visakhapatnam and Amaravati reflect Andhra Pradesh’s broader vision of sustainable, inclusive and globally competitive development.
IT investments fuel land price surge in Visakhapatnam
Land prices in Visakhapatnam have risen sharply following the announcement of major IT investments and data centre projects, with growth concentrated in the northern and coastal corridors of the city, according to the real estate industry.
E. Ashok Kumar, President of the CREDAI Visakhapatnam Chapter, told TNIE that North Visakhapatnam, particularly the stretch from Madhurawada to Bhogapuram, has emerged as the primary beneficiary due to the availability of government and private land.
Anandapuram Mandal has become a focal point for high-end development. He added that industrial investments, such as the ArcelorMittal project near Anakapalli, are likely to push housing demand in nearby areas, particularly Achutapuram.
According to Ashok Kumar, IT-led development has already resulted in steep land price increases in Anandapuram Mandal and Tagarapuvalasa. In one village identified for a data centre, prices have risen by about 75 per cent, moving from approximately Rs 3 crores to Rs 5 crores.
He said the fastest increase in land prices is along the coastal corridor between Rushikonda and Bheemili, supported by improved road connectivity and large gated housing projects. Residential land rates in North Visakhapatnam currently begin at around Rs 5,000 per sq ft and reach up to Rs 8,500 in premium communities, while areas such as Gajuwaka continue to see comparatively lower demand.
Ashok Kumar said bulk land purchases are being driven largely by investors and NRIs from outside Visakhapatnam, while IT employees tend to prefer flats or small plotted developments. He added that timely execution of identified master plan roads will be critical to sustaining future urban expansion
Reports: S Guru Srikanth, S Viswanath, Y Brahmaji and Neelima Eaty