Data Centers in Amaravati

Amaravati – India's Emerging Greenfield Hub

Executive Summary

Amaravati is a developing data center market suited for organizations executing long-term strategies in Southern India. As a planned capital city, it presents a greenfield opportunity for establishing a presence to serve the state of Andhra Pradesh. This market is ideal for disaster recovery sites or for businesses targeting future government and technology sector growth, where establishing an early foothold is a competitive advantage.

Amaravati: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As a developing market, Amaravati features a foundational carrier ecosystem, as of September 2025. The single data center provides access to the primary national and regional carriers, with true carrier neutrality being a core feature for future growth.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Amaravati, as of September 2025. Businesses require private network extensions (PNI) or wavelength services to connect to cloud provider fabrics in the nearest major hubs, such as Hyderabad or Chennai.

Internet Exchange Points (IXPs): Public peering is not established directly within Amaravati. Most network peering is handled through private interconnects or is routed through major national internet exchanges in cities like Mumbai, Chennai, or Hyderabad.

Bare Metal: Bare metal server availability is primarily sourced from providers with a national presence in India. While not hosted directly in Amaravati, services from providers like Hivelocity can be deployed in nearby edge locations or major metros to serve the region.

Power Analysis

Average Cost Of Power: The industrial electricity rate in the region is approximately $0.07/kWh, as of 2019. This competitive pricing makes the market attractive for power-intensive deployments, reducing a significant operational expense.

Power Grid Reliability: The power grid in designated economic zones is engineered for commercial needs. Data centers in the region are built with significant electrical redundancy, including multiple substations, UPS systems, and backup generators to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Amaravati is being developed as the new administrative capital of Andhra Pradesh. Data centers here are strategically positioned to serve future government agencies, educational institutions, and technology companies that will form the city's economic base.

Regional Market Reach: The market provides effective coverage for the entire state of Andhra Pradesh, a population of over 50 million. It also functions as a viable secondary or disaster recovery location for businesses operating in the larger, more congested markets of Hyderabad, Chennai, and Bengaluru.

Tax Advantage For Data Centers: India does not currently offer significant, nationwide tax incentives specifically for data center operations. Any financial benefits typically fall under broader policies for technology or infrastructure investment, not targeted data center programs.

Natural Disaster Risk

Amaravati has a high natural disaster risk profile, with an INFORM Risk score of 5.5 out of 10, as of September 2025. The risk is not uniform and is primarily driven by high exposure to a few specific, significant hazards.

The most critical natural hazards for this market include:

• River Flood: The city's location on the banks of the Krishna River creates a high risk of flooding.
• Earthquake: The region has notable seismic activity, requiring facilities to be built to stringent structural standards.
• Tropical Cyclone: The proximity to the coast of Andhra Pradesh brings a risk of high winds and heavy rainfall from cyclones originating in the Bay of Bengal.
• Drought: While flooding is a risk, the region is also susceptible to periods of severe drought.