Data Centers in Amaravati
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Amaravati – Emerging Hub for Southern India
Executive Summary
Amaravati is an emerging data center market for organizations targeting the state of Andhra Pradesh. As a planned capital city, it offers a greenfield opportunity for establishing a digital footprint to serve government and regional enterprises. Deploying here provides a strategic advantage for low-latency service delivery within a developing economic zone.
Amaravati: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity with capacity for future growth. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Chennai or Hyderabad; private network extensions are required. |
| Power Cost | $0.07/kWh – as of 2019 | Competitive industrial power rates support cost-effective operations. |
| Disaster Risk | High (5.5/10) – as of September 2025 | Elevated risk profile requires resilient infrastructure and disaster recovery planning. |
| Tax Incentives | No | No specific data center tax incentives are currently offered. |
| Sales Tax | 18% GST (general) – as of September 2025 | Standard national Goods and Services Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Amaravati's connectivity ecosystem is developing, reflecting its status as a planned city. While not as dense as established hubs, it provides foundational infrastructure for digital services in the region.
Carrier Density & Carrier Neutrality: The market features a developing carrier ecosystem, as of September 2025. Access to major national providers is available, though carrier-neutral facilities are still emerging compared to more mature Indian markets.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Amaravati, enabling access to 0 cloud regions locally, as of September 2025. Accessing hyperscale clouds like AWS, Google Cloud (GCP), or Microsoft Azure requires dedicated network links to the nearest major interconnection hubs, such as Chennai or Hyderabad.
Internet Exchange Points (IXPs): Public peering is limited within the city itself. Most network peering is conducted privately or routed through major national exchanges located in nearby metropolitan areas.
Bare Metal: Bare metal server options are available from providers that serve the broader Indian market. Companies like Hivelocity and Leaseweb can provide dedicated server solutions delivered to facilities in the region.
Power Analysis
Average Cost Of Power: Industrial power costs in the region are approximately $0.07/kWh, as of 2019. This competitive pricing creates a favorable environment for managing the high operational costs associated with compute-intensive infrastructure.
Power Grid Reliability: As a newly planned city, the power infrastructure is modern but still maturing. Data centers in the area rely on redundant power feeds from the grid, backed by on-site UPS systems and diesel generators to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Amaravati are positioned to serve the administrative and governmental heart of Andhra Pradesh. Proximity is critical for supporting state-level digital initiatives, smart city projects, and the growing commercial sector.
Regional Market Reach: The market provides a strategic point of presence for serving the nearly 50 million people of Andhra Pradesh and the wider southeastern coast of India. It reduces latency for end-users within this specific geographic corridor.
Tax Advantage For Data Centers: There are currently no tax incentives specifically for data center construction or operation. Any financial benefits would fall under general state or national programs for new business investment.
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 primary threats are environmental, demanding that facilities be engineered to high standards of physical resilience.
Key natural hazards include:
- River Flood (9.2/10)
- Earthquake (8.3/10)
- Tsunami (7.8/10)
- Coastal Flood (7.8/10)
- Tropical Cyclone (7.7/10)