Andhra Pradesh accelerates shift towards digital and green industries with Rs 2.08 trillion investment approval

The Andhra Pradesh government has approved 25 new projects worth Rs 2,08,406 crore, focusing on data centres and renewable energy, as part of its strategy to become a major hub for digital and clean industries, creating over 21,600 jobs.

Andhra Pradesh has deepened its push to position itself as a destination for large-scale industry, with the state government approving 25 investment proposals worth Rs 2,08,406 crore at the 20th meeting of its Investment Promotion Board on 12 August, according to local reports. The projects, chaired by Chief Minister N. Chandrababu Naidu, are expected to create about 21,627 direct jobs once operational.

The latest approvals build on an earlier round of clearances this year. In May, the state cabinet and the State Investment Promotion Board backed projects worth more than Rs 2 lakh crore across clean energy, manufacturing, healthcare and infrastructure, including proposals linked to Reliance Industries, Apollo Tyres, Royal Enfield and Carrier Airconditioning, according to Construction World and other Indian industry publications. Those approvals were presented as part of a broader effort to draw private capital into sectors that can anchor long-term industrial growth.

Data centres and green energy dominate the new list as well. The largest proposal is a Rs 85,200 crore data centre project from ReNew AP Green Data Centre in Anakapalli district, while other sizeable proposals include a Rs 7,800 crore green energy plant from Agastya Green Energy in Kurnool and a Rs 1,600 crore project from Akshat Green Tech in Visakhapatnam. Metro India and Mercom India reported earlier in May that Andhra Pradesh had already cleared a separate batch of major projects in data centres, renewable power, electric mobility and manufacturing, underlining the state’s effort to build scale in digital and clean-energy infrastructure.

Naidu has also focused attention on the practical constraints that often slow such projects. Water supply for the data centre cluster in North Andhra has emerged as a major issue, with the chief minister saying the facilities will need around 3.5 TMC of water and urging officials to explain the requirement clearly. The state plans to meet demand in Visakhapatnam through gravity flow from the Polavaram Left Canal, while also working on support for green ammonia, lithium batteries, robotics, defence and aerospace projects. Officials have been told to examine the policy incentives and infrastructure these newer sectors would need, to complete the remaining 37 MSME parks by September and to keep industrial incentives moving through escrow accounts from December, all while staying within the state’s fiscal limits.

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