Vizag poised for AI-driven economic transformation
VISAKHAPATNAM: Visakhapatnam is standing at the edge of an industrial evolution. In recent months, the city has become a focal point for global tech giants, with Google, Sify, and Reliance Industries announcing massive AI data centre projects.
If these plans materialise by 2030, the city is projected to host a staggering 2.5 to 2.8 gigawatts (GW) of capacity, a scale that would place it among the world’s elite digital hubs, rivalling major clusters in the United States. While the economic promise is undeniable, a complex dialogue is emerging between those who see a brighter future and those who urge caution regarding the city’s resources.
For many residents, the arrival of these “gigawatt-scale” projects represents a lifeline. And for BV Raju from Tarluvada, giving up 11 acres of ancestral land is a pragmatic choice. “We have farmed for generations, but we see no future in it,” he admitted.
With land prices surging to Rs 7 lakh per cent, his hope lies in securing a job for his unemployed graduate child. “I would rather my child get employment at the data center than remain jobless,” Raju explained, prioritising industrial opportunity over a struggling agricultural legacy.
This sentiment is echoed by others in the community who see a broader economic ripple effect. Sreenu, another local resident, noted that the impact goes beyond the data centre walls.
“It is not just direct jobs we are expecting but the indirect impact. Recently, an ITBP camp was set up in the nearby village. Due to jobs here, we have more business by way of running autos. Not even those in Visakhapatnam main city knew where Tarluvada was until recently. But now the whole world knows our village,” he said.
From an industry perspective, the scale of this growth is unprecedented. Seasoned Data Centres expert, Dr Pulak Bhaumik, CEO-Data Center at Listenlights Private Limited, describes the potential for Visakhapatnam to become a sustainable global AI hub. According to Dr Bhaumik, the projects could generate significant employment.
“A gigawatt-scale campus usually means a few thousand jobs in operations, including facility technicians and AI infrastructure managers. We expect about 5,000 to 6,000 direct jobs and potentially 20,000 to 30,000 total roles when including the indirect supply chain and construction phases,” he noted.
However, Dr. Bhaumik also emphasised that building in a coastal city like Visakhapatnam requires sophisticated engineering to ensure long-term reliability. “Environmental resilience is a top priority because this region is prone to cyclones and floods,” he explained.
He highlighted the need for sites on higher ground, flood barriers, and corrosion-resistant materials to protect equipment from the salty coastal air.
Despite this technical optimism, experts from “Scientists for People,” a Hyderabad-based non-profit, have raised significant concerns about the strain on local utilities. They point out that these centers will eventually require more electricity than all of Visakhapatnam’s current industries combined.
“Continuous demand may cause power cuts or blackouts unless new infrastructure is built. Furthermore, cooling systems can use millions of liters of water every day,” the group stated. They cautioned that if companies draw water from the Polavaram Godavari pipeline, it could divert essential supplies away from farmers and households.
Dr Bhaumik acknowledged these resource challenges, suggesting that the industry must move toward sustainable designs.While the technical debate continues, a sense of uncertainty lingers among the local youth who are expected to fill these new roles. One young graduate, speaking on the condition of anonymity, expressed a poignant mix of hope and fear.
“I’ve seen the reels calling this a prestigious project, and I’ve researched the benefits. But we have internal fears we don’t voice. It’s ironic; my parents didn’t even want me to work. For someone lacking the right to choose their own career, it feels like I have no right to speak up about whether this project will ultimately bring our village more good or bad,” they shared.
Transparency remains a central issue for civil society groups. The Human Rights Forum (HRF) and the United Forum for RTI Campaign (UFRTI) have voiced deep concerns over the government’s refusal to disclose the Memorandum of Understanding (MoU) signed with Google. VS Krishna of HRF and Chakradhar Buddha of UFRTI stated, “The government has refused to keep contents of the MoU in the public domain. Citizens have the right to know the exact nature of the commitments.”