RMZ–Andhra Pradesh pact at Davos signals up to $10bn bet on digital, data centre and industrial infrastructure

At the World Economic Forum’s annual meeting in Davos, RMZ and the Government of Andhra Pradesh announced a strategic investment partnership that could channel up to $10 billion into the State over the next five to six years, spanning mixed-use developments, digital infrastructure, data centres, and industrial and logistics parks.

Unveiled at World Economic Forum Davos 2026, the collaboration underscores Andhra Pradesh’s push to position itself as a next-generation destination for GCCs, hyperscale digital infrastructure and manufacturing-led growth—while offering long-term investors a platform-led, institutionally governed development pipeline.

Visakhapatnam as a digital and GCC hub

A central pillar of the partnership is Visakhapatnam, which the State wants to elevate into a mixed-use and digital infrastructure hub. RMZ plans to develop a Global Capability Centre campus at Kapuluppada Phase-1 IT Park, with a potential built-up area of up to 10 million sq. ft. across roughly 50 acres. The project is aimed at attracting global enterprises and deepening the city’s GCC ecosystem beyond traditional IT services.

Alongside this, RMZ is planning a hyperscale data centre cluster in the Visakhapatnam region with a targeted capacity of up to 1 gigawatt, to be developed in phases. Spread across an estimated 500–700 acres, the proposed platform is intended to support AI-era digital workloads, with sustainability and green power integration positioned as core design principles.

Industrial push in Rayalaseema

Beyond the coast, the partnership also focuses on balanced regional development. In the Rayalaseema region, RMZ plans to develop an industrial and logistics park at Tekulodu, spanning around 1,000 acres. The project is expected to anchor manufacturing, warehousing and logistics activity—sectors that are increasingly critical as supply chains localise and digitise.

Taken together, the proposed developments are projected to create employment for around one lakh people across IT, data centres, industrial manufacturing and logistics.

Policy certainty as the investment lever

For the Andhra Pradesh government, the announcement is as much about signalling policy predictability as it is about capital inflows. Nara Lokesh, Minister for IT, Electronics & Communications and Human Resources Development, said the partnership builds on the State’s momentum in GCC expansion and technology-led growth, adding that working with RMZ strengthens Andhra Pradesh’s ability to attract global enterprises and scale high-quality employment.

From RMZ’s perspective, the State’s speed of decision-making and single-point facilitation model appear to be key enablers. Manoj Menda, Chairman of RMZ’s Supervisory Board, described Andhra Pradesh as one of India’s most compelling destinations for next-generation digital and industrial infrastructure, citing execution certainty and a clear vision for regional balance as critical factors for deploying capital at scale.

Deepak Chhabria, President, RMZ Infrastructure, noted that the partnership builds on RMZ’s existing presence in the State, with a focus on creating scalable, sustainable ecosystems that can attract global capital while delivering long-term economic value locally.

A long-horizon infrastructure play

Rather than a single project announcement, the RMZ–Andhra Pradesh pact reflects a platform approach to infrastructure development—linking GCCs, hyperscale data centres and industrial parks into an integrated growth story. As states compete for global capital amid rising demand for AI-ready digital infrastructure, Andhra Pradesh is positioning itself as a jurisdiction that combines scale, speed and policy stability.

If executed as outlined, the partnership could become one of the State’s most significant private-sector infrastructure bets of the decade—anchoring Andhra Pradesh more firmly in India’s evolving digital and industrial map.

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