Infrastructure major Adani Group has initiated the construction of two data centers in Visakhapatnam, with a total investment of ₹21,844 crore. Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy laid the foundation stone for the projects, which are located at Madhurawada and Kapulappada near Visakhapatnam.

Vizag Tech Park Private Limited, a subsidiary of Adani Enterprises, is set to establish an Integrated Data Center and Technology and Business Park at Madhurawada with an investment of ₹14,634 crore. The project, which covers an area of 130 acres, includes a 200 MW data center and integrated business park, as well as a Skill University. It is expected to create 35,000 jobs, which includes 25,000 direct jobs.

“The project will be completed in five phases within the next seven years,” said the Chief Minister after laying the foundation stone for the project on Wednesday.

The second project, which will house an integrated data center and a technology and business park, is being constructed at Kapulappada near Bheemunipatnam. Adani Group will invest ₹7,210 crore on the project, which will create 14,825 jobs in seven years.

In January 2019, Adanis signed an agreement with the Andhra Pradesh Government to invest ₹70,000 crore in different phases to set up data centers with a capacity of 5 GW. While ₹40,000 crore was earmarked for the data center infrastructure, the remaining investment was meant to set up capacities to generate green power.

“Though an MoU was signed in January 2019, the then government had not taken any concrete measures to hand over the land to the company. We have re-negotiated with the company to expand the scope of the project in tune with trends in the IT industry. Accordingly, the company revised the DPR (Detailed Project Report),” said an official of the Andhra Pradesh Government.

“Following this, we identified 130 acres at Madhurawada and 60 acres at Kapulappada and handed over the same to the company,” he added