Data Centers in Visakhapatnam
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Visakhapatnam – Strategic Access for Coastal Connectivity
Executive Summary
Visakhapatnam serves as a vital secondary hub for enterprises requiring regional redundancy and low-latency access for the Andhra Pradesh tech markets. Its coastal position serves as a critical junction for digital growth, making it a reliable choice for maritime logistics and software firms.
Visakhapatnam: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Regional hub with expanding subsea access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Hyderabad is the nearest major cloud hub. |
| Power Cost | $0.07/kWh – as of September 2025 | Rates supported by national industrial grid. |
| Disaster Risk | High (5.5/10) – as of September 2025 | Risk from flooding and coastal storms. |
| Tax Incentives | No | Standard Indian business frameworks apply. |
| Sales Tax | GST 18% – as of September 2025 | Standard Indian Goods and Services Tax. |
Network & Connectivity Ecosystem
Visakhapatnam is maturing into a resilient network corridor. It functions as a gateway for traffic moving between the southern and eastern parts of the country.
Carrier Density & Carrier Neutrality: Carrier count: over 10, as of September 2025. The market features a mix of national players and regional providers providing diverse routing options for enterprise backhaul.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of September 2025. While dedicated local on-ramps are not present, low-latency private extensions connect to major cloud hubs in Hyderabad and Chennai.
Internet Exchange Points (IXPs): Public peering is primarily facilitated through the National Internet Exchange of India (NIXI) to keep local traffic within the region.
Bare Metal: High-performance compute options are available through global providers such as Hivelocity and Latitude.sh, supporting rapid local scaling.
Power Analysis
Energy availability is steady, supporting the city industrial and technology sectors.
Average Cost Of Power: $0.07/kWh, as of September 2025. This rate provides a stable operational baseline for cost-conscious deployments. The regional grid mix is approximately 75% fossil fuels and 23% renewables, reflecting the national energy profile.
Power Grid Reliability: Major industrial corridors in Visakhapatnam benefit from well-engineered infrastructure. Redundant feeds and multi-substation support provide the stability required for critical colocation facilities.
Market Access, Business & Tax Climate
The local economy is shifting for digital services and financial technology.
Proximity To Key Business Districts: Data centers are positioned near Fintech Valley and the Andhra University tech corridor. This proximity facilitates low-latency connections for the region expanding software and financial services firms.
Regional Market Reach: Visakhapatnam is the primary digital gateway for the state of Andhra Pradesh and parts of Odisha, serving a population of several million.
Tax Advantage For Data Centers: India classifies data centers as infrastructure, which helps operators secure long-term financing and credit. This status facilitates the capital-intensive process of scaling physical facility footprints.
Natural Disaster Risk
The overall risk for Visakhapatnam is High (5.5/10), as of September 2025. Facility operators must prioritize flood mitigation and wind-resistant construction due to the coastal environment.
Primary Natural Hazards:
- River Flood (9.2)
- Earthquake (8.3)
- Tsunami (7.8)
- Coastal Flood (7.8)
- Tropical Cyclone (7.7)
- Epidemic (6.7)
- Drought (6.4)
