Data Centers in Visakhapatnam
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Visakhapatnam – India's Emerging Coastal Data Hub
Executive Summary
Visakhapatnam is a strategic data center market for enterprises needing a presence on India's east coast. Its position as a major port and submarine cable landing station makes it an essential location for disaster recovery and for serving the growing digital economy of Andhra Pradesh and Eastern India, ensuring lower latency access for millions of users.
Visakhapatnam: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A well-connected secondary market with strategic subsea cable access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connect to cloud providers via network extensions from Chennai or Hyderabad. |
| Power Cost | ≈$0.07/kWh – as of 2019 | Competitive industrial power rates support cost-effective, high-density deployments. |
| Disaster Risk | High (5.5/10) – as of September 2025 | Primarily driven by flood and cyclone risk, requiring robust facility engineering. |
| Tax Incentives | No | The market currently offers no specific tax incentives for data centers. |
| Sales Tax | 18% GST – as of September 2025 | The standard Goods and Services Tax applies to services. |
Network & Connectivity Ecosystem
Visakhapatnam is rapidly developing as a key connectivity point on India's east coast, driven by its strategic port and status as a landing station for major subsea cables.
Carrier Density & Carrier Neutrality The market features a growing number of national and regional carriers, as of September 2025. Carrier-neutral facilities provide access to India's primary telecom and fiber providers, offering resilient connectivity options.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Visakhapatnam data centers, meaning no native access to the 0 cloud regions located here as of September 2025. High-performance, low-latency access to major cloud providers is achieved via private network extensions to primary hubs like Chennai and Hyderabad.
Internet Exchange Points (IXPs) Public peering is limited within the city. Most network traffic is exchanged through private peering arrangements inside data centers or routed via major national exchange points like NIXI in Chennai or Hyderabad.
Bare Metal Bare metal server capacity is available, offering dedicated compute for performance-sensitive workloads. Providers such as Hivelocity and phoenixNAP can service the region, often deploying from nearby primary markets.
Power Analysis
The power infrastructure in Visakhapatnam is well-suited for supporting data center operations, combining competitive costs with a focus on improving grid stability.
Average Cost Of Power The average industrial electricity rate is approximately $0.07/kWh, as of 2019. This competitive pricing makes it economical to run high-density compute and storage infrastructure. The grid is primarily powered by fossil fuels (around 75%), with a significant and growing share from renewable sources.
Power Grid Reliability The power grid supporting Visakhapatnam's industrial zones is reliable. Data centers in the area are supported by redundant power feeds and substations, aligning with the uptime requirements of modern IT infrastructure.
Market Access, Business & Tax Climate
Visakhapatnam offers a compelling business environment, serving as a gateway to the state of Andhra Pradesh and the wider eastern region of India.
Proximity To Key Business Districts Data centers in Visakhapatnam are strategically located to serve the region's heavy industry, including steel, petroleum, and pharmaceuticals, as well as a growing IT and financial services sector. Proximity reduces latency for critical local applications.
Regional Market Reach The market provides effective, low-latency coverage for the nearly 50 million people in Andhra Pradesh. It also serves as an excellent disaster recovery location for businesses with primary infrastructure in Chennai or Hyderabad.
Tax Advantage For Data Centers There are no specific tax incentives for data center development in this market. The financial advantages stem from competitive operational costs, particularly power, rather than direct government tax breaks.
Natural Disaster Risk
Visakhapatnam has a high-risk profile for natural disasters, with an overall INFORM risk score of 5.5 out of 10, as of September 2025. The coastal location exposes facilities to significant weather-related events that demand resilient infrastructure.
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)
Data center selection in this market requires careful evaluation of a provider's specific flood mitigation, seismic reinforcements, and cyclone readiness plans.
