Data Centers in Visakhapatnam
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Visakhapatnam, India – Port City for Digital Growth
Visakhapatnam is an emerging data center market positioned to serve India's eastern coast and its substantial industrial base. For businesses requiring a strategic disaster recovery site or low-latency access to this key economic and shipping hub, Visakhapatnam offers a compelling alternative to more congested primary markets. This location ensures efficient data handling for logistics, manufacturing, and regional enterprise.
Visakhapatnam, India: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via private network extension to hubs like Chennai or Hyderabad. |
| Power Cost | ≈$0.07 USD/kWh – as of 2019 | Competitive industrial power rates support cost-effective operations. |
| Disaster Risk | High (5.5/10) – as of September 2025 | High exposure to flood and cyclone events necessitates resilient infrastructure. |
| Tax Incentives | No | No specific data center tax incentives are currently offered. |
| Sales Tax | 18% GST (general) – as of September 2025 | Standard Goods and Services Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Visakhapatnam's connectivity is centered on serving its industrial and port operations, with a growing ecosystem to support digital services.
Carrier Density & Carrier Neutrality: As an emerging market, Visakhapatnam has foundational carrier diversity with at least one carrier-neutral facility available as of September 2025. The market is poised for growth as more providers build out their presence.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Visakhapatnam as of September 2025, with zero cloud regions accessible directly. Businesses connect to major cloud providers via private network links to primary hubs like Chennai or Hyderabad.
Internet Exchange Points (IXPs): Public peering is limited. Most traffic exchange occurs through private peering arrangements or is routed via national IXPs in major metropolitan areas, ensuring reliable domestic connectivity.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity and phoenixNAP can service the region through network partners.
Power Analysis
India's power infrastructure is a mix of traditional and renewable sources, with a focus on improving reliability for industrial users.
Average Cost Of Power: Industrial power costs in the region are approximately $0.07 USD/kWh as of 2019. This competitive pricing makes high-density deployments more economically viable compared to many global markets.
Power Grid Reliability: The regional power grid is stable, supported by a generation mix heavily weighted towards fossil fuels. Data centers in Visakhapatnam are built with extensive redundancy, including multi-megawatt generator and UPS systems, to ensure uptime for critical operations.
Market Access, Business & Tax Climate
Visakhapatnam is a major industrial and commercial center on India's east coast, offering strategic access to a significant portion of the country's economy.
Proximity To Key Business Districts: Data centers in Visakhapatnam are situated to support the city's large port, steel industry, and growing IT and pharmaceutical sectors. This proximity provides low-latency connectivity for local manufacturing, logistics, and enterprise clients.
Regional Market Reach: The city is a digital gateway to the state of Andhra Pradesh and neighboring states. Its coastal location also makes it a key landing point for subsea cables, positioning it for future growth as an international connectivity hub.
Tax Advantage For Data Centers: India does not currently offer specific national tax incentives for data center construction or operation. The primary financial advantage comes from competitive operating costs, including power and skilled labor.
Natural Disaster Risk
Visakhapatnam has a high overall risk profile, rated 5.5 out of 10 as of September 2025, driven primarily by its coastal location and climate. Operators must engineer facilities to withstand significant environmental threats.
The most prominent 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)
