AirTrunk Proposes $11 Billion Data Center Expansion in India

AirTrunk, the prominent data center operator supported by Blackstone, has officially submitted detailed proposals for the construction of two hyperscale data center campuses in the Indian state of Andhra Pradesh. This ambitious project, which carries an estimated investment value of approximately $11 billion (₹1.03 lakh crore), represents a significant milestone in India's rapidly evolving digital infrastructure landscape. If approved, the facilities would provide a combined capacity of up to 1.8 gigawatts, positioning the region as a critical hub for global cloud and artificial intelligence services.

The proposed development is currently under review by the Andhra Pradesh government. The initiative aligns with the state's broader strategy to attract high-tech investments and bolster its standing as a premier destination for digital infrastructure. This move follows a series of major corporate commitments in the area, including a separate $15 billion AI hub project announced by Google, signaling a robust growth trajectory for the state's technology sector.

To address the significant resource demands inherent in such large-scale operations, AirTrunk has emphasized its commitment to sustainability. The company plans to utilize low-water, air-cooled technology to minimize environmental impact and intends to rely on industrial water supplies rather than municipal sources. These measures are designed to mitigate concerns regarding the strain on local water and electricity grids, which have become focal points of public and regulatory scrutiny.

Andhra Pradesh Chief Minister N. Chandrababu Naidu has expressed support for the project, noting that the state is actively working to enhance its renewable energy capacity and water infrastructure to accommodate the influx of energy-intensive facilities. The government's efforts are aimed at ensuring that the necessary utilities are available to support both current and future industrial growth.

This proposal is a key component of AirTrunk's wider expansion strategy in India. Since entering the market earlier this year through the acquisition of Lumina CloudInfra, the company has outlined a long-term vision to invest over $30 billion by 2030, aiming to develop more than 5 gigawatts of total capacity across the country. While the Andhra Pradesh project remains subject to final regulatory clearances, it underscores the growing importance of India as a strategic market for global data center operators.