Visakhapatnam Eyes Digital Hub Status with 51,840 New Jobs

Visakhapatnam is set to emerge as one of India's leading digital infrastructure hubs, with proposed data centre projects expected to generate 51,840 direct and indirect jobs while significantly boosting housing, commercial real estate and allied industries, according to a private research report cited by the Andhra Pradesh government. The report, referenced in a government statement issued on Thursday, highlights that the city's digital transformation could become a major driver of the state's economic growth by attracting large-scale investments and strengthening its position in India's rapidly expanding digital economy.

According to the report, the proposed data centre ecosystem will create 3,240 direct jobs in areas such as data centre operations, engineering, network management, technical services and security. In addition, nearly 48,600 indirect jobs are expected to be generated across construction, electrical works, logistics, warehousing, transportation, hospitality, retail, maintenance and facility management. The government said the projects would open up extensive employment opportunities for local youth while creating a strong ecosystem around the digital infrastructure sector.

The report noted that the impact of data centres extends far beyond the technology industry. Their establishment is expected to attract substantial investments in power infrastructure, fibre-optic connectivity, water supply systems, utility services, logistics networks and commercial infrastructure, laying the foundation for a broader industrial and business ecosystem. These developments are likely to accelerate regional economic activity, strengthen supply chains and encourage the growth of ancillary industries that support digital infrastructure.

The anticipated influx of technology professionals, engineers, entrepreneurs and skilled workers is also expected to reshape Visakhapatnam's real estate market. The report estimates that the city will require nearly 23.3 million square feet of additional residential space, creating demand for apartments, villas, gated communities and rental housing. This housing boom is expected to benefit the construction sector while generating business for building materials, financial services and urban infrastructure developers.

Commercial real estate is projected to witness similar growth as the expanding digital economy increases demand for office buildings, business parks, warehouses, retail centres, shopping complexes, hotels, restaurants and civic infrastructure. The report said these developments would also create fresh opportunities for small and medium-sized enterprises (SMEs) and service providers catering to the growing business ecosystem.

The report attributes Visakhapatnam's growing appeal to its strategic port location, coastal connectivity, reliable power availability, expanding transport network, skilled workforce and evolving IT ecosystem. These advantages, combined with rising demand for cloud computing, artificial intelligence (AI), digital governance, fintech and e-commerce, are expected to position the city as a preferred destination for large-scale digital infrastructure investments.