AirTrunk Proposes $11 Billion Data Center Expansion in India

AirTrunk, the data center operator supported by Blackstone, has officially submitted detailed plans to the Andhra Pradesh government for the development of two major hyperscale campuses. This ambitious project, estimated to cost approximately $11 billion (₹1.03 lakh crore), represents a significant milestone in India's rapidly evolving digital landscape.

The proposed facilities, located in the Anakapalli district, are designed to provide a combined capacity of up to 1.8 gigawatts (GW). Specifically, the plans outline a 1.4 GW site at Tootipala and a 400 MW facility at Rambilli. These campuses are intended to support the surging demand for cloud computing and artificial intelligence infrastructure across the region.

To address environmental concerns associated with such energy-intensive projects, AirTrunk has committed to utilizing low-water, air-cooled technology. The company also intends to source industrial water rather than relying on municipal supplies, aiming to mitigate the impact on local water resources. These measures are part of a broader effort to ensure the sustainability of the massive infrastructure buildout.

State officials, including Chief Minister N. Chandrababu Naidu, have expressed support for the initiative, emphasizing that the government is actively expanding renewable energy capacity to meet the power requirements of such large-scale developments. The state is currently pursuing a mix of solar, wind, and pumped-storage hydropower projects to ensure a stable energy supply for incoming technology investments.

This proposal is a key component of AirTrunk’s wider strategy for India, which includes a commitment to invest over $30 billion by 2030 to build more than 5 GW of capacity. Since entering the Indian market earlier this year through the acquisition of Lumina CloudInfra, the company has been aggressively expanding its footprint in major hubs like Mumbai, Chennai, and Hyderabad.

While the project is currently under review by state authorities, it is expected to generate thousands of direct and indirect jobs. The successful realization of these campuses would solidify Andhra Pradesh's position as a premier destination for global technology firms and hyperscale data center operators.