Data Centers in Amaravati
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Amaravati – Emerging South India Digital Hub
Executive Summary
Amaravati is an emerging data center market positioned to serve the state of Andhra Pradesh and surrounding regions. It provides a strategic location for disaster recovery and content delivery for businesses targeting South India. This market is ideal for organizations requiring proximity to government operations and a cost-effective alternative to the primary Indian hubs of Mumbai and Chennai.
Amaravati: At A Glance
Factor | Rating / Data | Notes |
---|---|---|
Global Connectivity Grade | B | Good regional connectivity, but lacks the density of India's primary markets. |
Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest cloud access hubs are in Hyderabad and Chennai. |
Power Cost | ≈$0.07 USD/kWh – as of 2019 | This competitive pricing is based on industrial rates for the region. |
Disaster Risk | High (5.5/10) – as of September 2025 | Significant exposure to flooding and seismic activity requires careful site selection. |
Tax Incentives | No | No specific tax incentives for data centers are currently offered. |
Sales Tax | 18% GST (general) – as of September 2025 | This is the standard Goods and Services Tax rate applied nationally. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As an developing market, Amaravati has a growing number of national and regional carriers available, as of September 2025. While carrier density is lower than in Mumbai or Chennai, neutral facilities provide access to key providers for resilient connectivity.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Amaravati, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through network extensions from the nearest major hubs, primarily Hyderabad and Chennai. Private network interconnects offer secure, low-latency access.
Internet Exchange Points (IXPs): Public peering is limited within the immediate market. Most network peering is conducted privately between carriers or routed through the nearest National Internet Exchange of India (NIXI) points in Hyderabad or Chennai to optimize traffic flow.
Bare Metal: Bare metal server options are available, typically through providers with a national presence in India. Companies like Hivelocity and Leaseweb can service deployments in the region, offering dedicated compute for performance-sensitive workloads.
Power Analysis
Average Cost Of Power: The average industrial power cost in the region is approximately $0.07 USD/kWh, as of 2019. This competitive rate can lead to significant operational savings for compute-heavy deployments compared to more expensive global markets.
Power Grid Reliability: The power grid supporting Amaravati is capable of serving enterprise needs. Data centers in the area are engineered with redundant power feeds, on-site generators, and extensive UPS systems to guarantee uptime and meet service-level agreements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Amaravati are strategically located to serve the administrative and governmental capital of Andhra Pradesh. This proximity is critical for government agencies and contractors who require low-latency access to digital infrastructure.
Regional Market Reach: Amaravati provides an excellent base for serving the nearly 50 million people in Andhra Pradesh and adjacent states. It reduces latency for end-users in the region compared to hosting content in more distant Indian metros.
Tax Advantage For Data Centers: There are no specific tax incentives or advantages for data center development in Amaravati. The standard national Goods and Services Tax (GST) of 18% applies to services rendered.
Natural Disaster Risk
Amaravati has a high-risk profile for natural disasters, with an INFORM Risk score of 5.5 out of 10, as of September 2025. The region's infrastructure and population are exposed to significant environmental hazards that require robust facility design and disaster recovery planning.
Key risks include:
- River Flood: The most significant threat, with a score of 9.2/10, due to the city's location on the banks of the Krishna River.
- Earthquake: A high seismic risk, rated at 8.3/10.
- Tropical Cyclone: The region is susceptible to cyclones from the Bay of Bengal, with a risk score of 7.7/10.
- Coastal Events: While inland, the broader region faces threats from tsunamis and coastal flooding (both 7.8/10), which can disrupt regional infrastructure.