VIJAYAWADA: Andhra Pradesh is set to expand its industrial footprint with Carrier Global breaking ground on a Rs 1,000 crore chiller manufacturing facility at Sri City. HRD and IT Minister Nara Lokesh will lay the foundation stone for the plant on Wednesday, underscoring the State’s push to integrate advanced manufacturing with its fast-growing digital infrastructure sector.
The project, spread across 39 acres in Tirupati district’s Satyavedu constituency, will be developed in three phases by 2028. Officials said the plant will generate employment for more than 3,000 people and create future-ready manufacturing capacity with advanced smart technologies.
Carrier, a US-based air-conditioning giant with over five decades of operations in India, already runs a manufacturing unit in Gurugram and a Global Centre for Excellence in Hyderabad. The Sri City facility will add scale and sophistication, featuring state-of-the-art infrastructure and modern plant and machinery to meet rising demand for HVAC and related products.
The project comes as Andhra Pradesh rapidly emerges as one of India’s most significant destinations for hyperscale data centres. Google has broken ground on a $15 billion AI hub in Visakhapatnam with a planned 1 GW capacity, while Reliance Industries has proposed a 1.6 lakh crore cluster.
With an overall investment pipeline exceeding `6 lakh crore and a targeted 6 GW capacity, the State is positioning itself well ahead of national benchmarks. Progressive policies, including dedicated power frameworks for data centres, are transforming Visakhapatnam into a premier hub for AI, cloud, and digital infrastructure.
Carrier’s entry strengthens this ecosystem by bringing advanced cooling technologies indispensable for next-generation data centres, AI infrastructure, and high-performance computing.
The facility will catalyse supplier networks, innovation, and export-oriented manufacturing, reinforcing Sri City’s role as a nucleus for HVAC and electronics. Already, the industrial zone has attracted `12,000 crore investments in cooling and AC manufacturing, created 25,000 direct jobs, and is projected to account for nearly 60% of India’s AC production by 2027.
The State’s vision goes beyond hosting data centres to building a complete value chain — from cooling and thermal management systems to power solutions, precision engineering, and electronics. By integrating manufacturing with digital infrastructure, Andhra Pradesh aims to reduce import dependency, boost exports, and position India as a global leader in data infrastructure manufacturing.
Lokesh said, “Andhra Pradesh is not content with being just a host for data centres – we are determined to become the engine that powers them. Carrier’s facility at Sri City marks a defining moment in our journey to build a full-stack data infrastructure ecosystem.”
The groundbreaking ceremony is expected to draw senior officials, industry representatives, and global partners, highlighting Andhra Pradesh’s intent to lead not only in digital infrastructure but also in industrial innovation aligned with the future of AI, cloud, and data economies.
