Data Centers in Visakhapatnam
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Visakhapatnam – India's Emerging Eastern Gateway
Visakhapatnam is a strategic data center market for enterprises targeting India's eastern coast and the state of Andhra Pradesh. Its position as a major port city with significant industrial and IT activity makes it an ideal location for disaster recovery and latency-sensitive applications serving the region. This market provides a crucial alternative to more congested data center hubs, ensuring resilient service delivery.
Visakhapatnam: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national and regional connectivity, with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connect via network extension to hubs like Chennai or Hyderabad. |
| Power Cost | ≈$0.07/kWh, as of 2019 | Favorable industrial rates; grid is primarily fossil-fuel based. |
| Disaster Risk | High (5.5/10) – as of September 2025 | Primarily exposed to flood and cyclone events due to coastal location. |
| 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 most transactions. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Visakhapatnam's ecosystem includes a growing number of national and regional carriers, with at least one carrier-neutral facility available, as of September 2025. This provides foundational options for redundancy and network resilience.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Visakhapatnam data centers, as of September 2025. Access to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure requires private network links to major interconnection hubs such as Chennai or Hyderabad.
Internet Exchange Points (IXPs): Public peering is limited within the city. Most network interconnection occurs through private peering arrangements within local data centers or by backhauling traffic to national exchanges in major metropolitan areas.
Bare Metal: Bare metal server options are available, enabling businesses to deploy dedicated infrastructure. Providers like Hivelocity can service the region, offering customized compute resources for performance-intensive workloads.
Power Analysis
Average Cost Of Power: Industrial power rates in the region are competitive, averaging approximately $0.07/kWh, as of 2019. This cost structure is advantageous for high-density deployments common in modern data centers. The power mix is dominated by fossil fuels (~75%), with renewables and nuclear power making up the remainder.
Power Grid Reliability: The power grid supporting Visakhapatnam is well-established, serving heavy industry and a major port. Data centers in the area are supported by this infrastructure, which is engineered for high availability, though on-site redundant power systems remain standard practice.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Visakhapatnam are positioned to serve the city's Special Economic Zones (SEZs), the Visakhapatnam Port, and major industrial operations like the Vizag Steel Plant. This proximity delivers low-latency connectivity essential for logistics, manufacturing, and IT services.
Regional Market Reach: Visakhapatnam serves as a digital hub for the state of Andhra Pradesh and the broader eastern coastal region of India. It offers a strategic location for content delivery, cloud services, and disaster recovery for businesses operating across the Bay of Bengal.
Tax Advantage For Data Centers: The primary financial advantage is a straightforward and predictable tax structure under the national GST system. While no special incentives exist for data centers, this creates a stable operating environment without complex, conditional tax benefits.
Natural Disaster Risk
Visakhapatnam has a High natural disaster risk profile, with an INFORM Risk score of 5.5 out of 10, as of September 2025. Its coastal location exposes infrastructure to specific environmental threats that require careful planning and mitigation.
The most significant 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)
