Andhra Pradesh IT Minister Nara Lokesh on Thursday, 24 September 2026, outlined the state's framework for sustainable data-centre development, anchored by a mandatory rule that at least 70% of energy consumed by data centres must be sourced from renewables — including solar, wind, pumped storage, and battery-based systems. Lokesh made the remarks at a fireside chat organised by the Public Affairs Forum of India (PAFI) in New Delhi.

The Green Energy Mandate

The 70% renewable energy threshold is described as the state's first and non-negotiable benchmark for any data-centre operator. Eligible clean energy sources span solar, wind, pumped hydro storage, and battery-based systems, reflecting the breadth of Andhra Pradesh's renewable portfolio. This positions the state as one of the few in India to codify an explicit green energy floor for data-centre approvals.

Water Strategy: Polavaram and Desalination

On the critical question of water supply — a persistent concern for energy-intensive data centres — Lokesh confirmed that the state's primary data-centre cluster is being developed in Visakhapatnam. Water needs will be addressed through the Polavaram Left Bank Canal, drawing from the Polavaram project, which, according to the minister's office, would redirect water that would otherwise drain into the Bay of Bengal toward industrial use in Visakhapatnam.

Beyond canal supply, the state is also incentivising data-centre operators to establish desalination plants. Lokesh noted that at least one company has already begun setting up a desalination facility in the state, signalling early traction for the policy.

23-Sector Cluster Strategy and Global Investment

Lokesh contextualised the data-centre push within a broader 23 sector-specific cluster strategy designed to drive investment, innovation, and employment across the economy. The clusters span a wide range — from traditional manufacturing such as cement and automotive, to material sciences, rare earth minerals, biomedical, pharmaceuticals, AI, and data centres.

He highlighted a major investment by Google in Andhra Pradesh as a catalyst, saying it is now drawing follow-on investments in the data-centre segment. On the frontier technology front, Lokesh said Andhra Pradesh has taken the lead in bringing the first 150-qubit quantum computer from IBM to Amaravati, with a wider quantum ecosystem being developed covering cryogenics, material sciences, and quantum applications including manufacturing.

Agriculture, Hospitality, and the ₹1 Lakh Crore Horticulture Mission

Lokesh stressed that the state's ambitions are not confined to technology. He announced that the Horticulture Mission will be launched on 2 October, with close to ₹1 lakh crore in research investment planned. The state also intends to develop an Indian School of Agriculture, modelled on the Indian School of Business in Hyderabad, to build a research and development ecosystem for the agriculture sector.

On employment, Lokesh said Andhra Pradesh is focused on creating both blue-collar and white-collar jobs across sectors, and that skilling will be central to meeting diverse workforce demands. The state also aims to add 50,000 hotel rooms through a push in the hospitality sector.

The $2.4-Trillion Economy Goal

Andhra Pradesh is currently a $200-billion economy, and Lokesh said the state has set an ambition of reaching a $2.4-trillion economy by 2047 — a twelve-fold expansion that he acknowledged requires the state to develop every sector simultaneously. With the Horticulture Mission, quantum computing, Google-anchored data centres, and a 23-cluster investment strategy all running in parallel, the state is placing a high-stakes bet on breadth as much as depth.