Google, HCL, TCS: From the city of destiny to IT hub, Vizag all set to give Hyderabad tough competition

Visakhapatnam: Vizag popularly known as the city of destiny, is on the path to becoming the IT hub of Andhra Pradesh.

Major players like Google, HCL, TCS, and Adani Data Centre are racing to set up their units in the city.

This development is expected to transform Visakhapatnam into a prominent IT destination, potentially rivaling Hyderabad in the coming years.

Post the bifurcation of Andhra Pradesh, many young professionals migrated to cities like Hyderabad, Bengaluru, Chennai, and Pune in search of IT job opportunities. With the establishment of IT companies in Visakhapatnam, local youth will now have the chance to secure employment in their hometown, reducing the need to move to other states.

Visakhapatnam is now on the verge of a transformative phase, with IT giants and infrastructure projects driving its growth into a global technology hub. Here are some:

Google's AI Initiative

Global technology leader Google has identified a significant opportunity in Artificial Intelligence (AI) in Visakhapatnam. The Andhra Pradesh government recently signed a Memorandum of Understanding (MoU) with Google to enhance AI training in schools, colleges, and startups, and to boost sectors like healthcare and industries.

Under this collaboration, Google will integrate AI and Machine Learning (ML) solutions into key areas such as healthcare and environmental sustainability. The partnership will also focus on skill development and bridging the digital divide by offering resources and training to help citizens thrive in an AI-driven economy. Furthermore, Google aims to support the state's startup ecosystem, driving innovation and entrepreneurship in AI.

Following the proposal of Visakhapatnam as a strategic investment location, Google's executives visited the city and were highly impressed. Chief Minister Nara Chandrababu Naidu remarked, “If big firms like Google invest in Visakhapatnam, it will be a game changer. Data centers, AI, machine learning, and deep tech, along with internet sea cables, will transform the coastal city into a global service hub.”

TCS to Create 10,000 Jobs

Tata Consultancy Services (TCS) is set to establish an IT facility in Visakhapatnam, which will employ up to 10,000 people. During Minister Lokesh's visit to Tata Group’s headquarters in Mumbai, discussions were concluded, and the project is expected to take off within six months. Lokesh highlighted the significance of this investment as a major step toward making Andhra Pradesh India’s top business-friendly state.

HCL Expansion

Leading software company Hindustan Computers Limited (HCL) has announced plans to expand its operations in Visakhapatnam, creating at least 15,000 jobs. In its second phase, HCL will construct a multi-story facility, which will provide employment to another 10,000 individuals.

HCL already provides 4,500 jobs through its operations in Gannavaram, near Vijayawada.

Adani Data Centre and Technology Park

The Adani Group is developing an Integrated Data Center and Technology Business Park in Visakhapatnam, with an estimated investment of ₹70,000 crore. This pioneering project will be powered entirely by renewable energy.

The project was initially planned in 2019 during the Chandrababu Naidu-led government, but delays pushed its groundbreaking ceremony to May 2023 under the YSRCP government. The event was attended by then Chief Minister YS Jagan Mohan Reddy, Adani Group Managing Director Rajesh Adani, and CEO of Adani Ports Karan Adani.

The project, managed by Vizag Tech Park Private Limited, a subsidiary of Adani Enterprises, spans 130 acres in Madhurawada. It includes a 200 MW data center, an integrated business park, and a Skill University. The initiative is expected to generate 35,000 jobs, including 25,000 direct employment opportunities.

Another integrated data center and technology park is under development at Kapulappada, near Bheemunipatnam, and will create 14,825 jobs.

Green Hydrogen Hub:

The green hydrogen hub project, spearheaded by NTPC Green Energy Limited (NGEL) will be developed at Pudimadaka in Atchutapuram mandal of Anakapalle district. Spread over 1,600 acres, this ambitious initiative will turn Andhra Pradesh into a green energy powerhouse, making India a global leader in green hydrogen production. The project will create 25,000 jobs.

The facility will produce 1,500 tonnes of green hydrogen per day, along with 4,500 tonnes of green ammonia, 1,500 tonnes of green methanol, and 1,500 tonnes of Sustainable Aviation Fuel (SAF) or Green Urea daily. This output is set to make India a prominent exporter of green energy products. This hub is part of India’s ambitious goal to produce 5 million metric tons of green hydrogen annually by 2030.

The foundation stone for the project was scheduled on November 29 by Prime Minister Narendra Modi, however it has been cancelled due to heavy rainfall alert. Another date for the foundation laying ceremony will be decided soon.

Transformation of Districts:

The state government under the TDP envisioned a development plan assigning specific industries to each district.

Anantapur: To become a mobility hub with investments from companies like Kia Motors.

Kurnool: A center for renewable energy, aiming to generate 72 gigawatts through hydro storage, wind, and solar projects in the next five years.

Chittoor and Kadapa: To emerge as manufacturing hubs for electronics.

Prakasam: To be developed as a biofuels hub.

Furthermore, global firms like Lulu Group, Brookfield, Oberoi, and Suzlon Energy have announced investments in Visakhapatnam, boosting its economic profile.

Impact of Previous Policies:

IT Minister Lokesh criticized the previous government's policies, which he claimed stalled the growth of the IT sector in the state. Between 2014 and 2019, Andhra Pradesh witnessed the establishment of 150 IT companies, providing 50,000 jobs. During this period, the government also signed an agreement with the Adani Group for a data center and organized an IT conclave in Visakhapatnam with global technology leaders.

However, the subsequent administration’s demand for shares in IT companies reportedly led to the exit of entities like NICSI and STBI, resulting in job losses for the youth. Lokesh expressed regret over this policy, emphasizing its adverse impact on the state's IT sector.

Lokesh predicts that by 2047, Visakhapatnam will emerge as India’s fifth-largest city.