Meta Platforms is reportedly set to lease a 500-megawatt (MW) hyperscale AI data-centre in Visakhapatnam, Andhra Pradesh, via a partnership with Sify Technologies
The facility is planned for Paradesipalem village (approx. 25 km from Visakhapatnam city, along Kolkata-Srikakulam highway)
Sify is expected to invest around ₹15,266 crore (~US $1.8-2 billion) in building the facility
Meta will act as the end-user lessee of the infrastructure — marking its first large-scale data-infrastructure lease in India.
In parallel, Meta will also land its ambitious underwater cable project, “Waterworth”, at Sify’s landing station in the region.
Why the Move Matters
1. Big for India’s AI & data-centre ecosystem
India is rapidly becoming a hub for data-centre and AI infrastructure. The lease signals Meta’s commitment to expand its compute & AI footprint in the country.
2. Strategic for Meta’s global network & connectivity
By landing the Waterworth subsea cable on the east coast of India and coupling it with the 500 MW facility, Meta is enhancing both compute capacity and global connectivity.
3. Boost to Andhra Pradesh’s ambitions
The state government of Andhra Pradesh has been pushing for major data-centre growth (a 6 GW data-centre ecosystem is cited). This deal strengthens that trajectory.
4. Infrastructure & investment scale
₹15,266 crore investment and 500 MW capacity illustrate the scale of the build-out and power consumption. This is far larger than a typical “regular” data-centre campus.
5. Leasing model vs owning
Meta opting to lease the facility (rather than build/own outright) may hint at a strategic shift in how tech giants deploy global infrastructure.
Key Details at a Glance
| Parameter | Detail |
|---|---|
| Capacity | ~500 MW |
| Location | Paradesipalem village (~25 km from Visakhapatnam city) |
| Investment | ~₹15,266 crore (by Sify Technologies) |
| End-user/Lesee | Meta Platforms Inc. |
| Supporting project | Waterworth subsea cable landing |
| State ecosystem | Andhra Pradesh’s data-centre initiative (~6 GW target) |
Challenges & Considerations
- Power demand & sustainability: A 500 MW data-centre will require robust and reliable power supply; questions around renewable sourcing and emissions will arise.
- Connectivity/Latency: For AI workloads, ultra-low latency is vital. The placement of the landing station and the routing of global cable will matter.
- Timeline & execution risks: While announced, large-scale builds often face delays or regulatory/land hurdles. Confirmation and implementation timelines are not yet public.
- Local ecosystem integration: The impact on local infrastructure, workforce, and supply-chain (cooling, chips, racks) will need to be managed.
- Regulatory & policy environment: India’s data localisation, tax incentives, and power tariffs will play a role in the long-term viability.
Implications for Stakeholders
For Meta
- Gains a scalable lease model in India, allowing faster deployment of AI compute capacity.
- Positions itself for stronger presence in South Asia and connectivity with global markets (via Waterworth).
For Sify Technologies
- Large customer commitment; enhances its profile as a major data-centre developer.
- Potential IPO listing in 2026 could be boosted by this anchor deal.
For Andhra Pradesh & India
- Strengthens the east-coast as a data-centre hub (complementing Mumbai/Chennai/Goa etc).
- Attracts global tech investment, jobs, and ancillary industries (cooling, power, networking).
For the Data-centre/AI Market
- Signals that leasing models (vs owning) may become more common for hyperscale players.
- May intensify competition among Indian states vying for data-centre projects.
- Raises benchmark for scale (500 MW is large) and investment cost (~₹15,000 crore+).
What to Watch Next
- Official announcement and detailed MoU: While widely reported, neither Meta nor Sify have publicly announced full details at this stage. NDTV Profit
- Timeline for build-out: When will the facility become operational? Will it be phased (e.g., 100 MW first then scale to 500 MW)?
- Power sourcing: How much renewable energy will be used? Will there be a dedicated renewable power project?
- Impact on local supply-chain: Will there be incentives or local manufacturing of racks, cooling systems, etc?
- Regulatory/policy changes: Whether India (or Andhra Pradesh) offers further incentives, or imposes localisation/data-sovereignty requirements that impact deployment.
- Environmental/community impact: Large data-centres can draw scrutiny on water usage, land/floor-space, local infrastructure.
- Meta’s global strategy: How this India facility fits with Meta’s broader data-centre and cable deployments (e.g., in Brazil, Africa, etc).
Conclusion
The announcement that Meta will lease a 500 MW AI data-centre in Visakhapatnam via Sify Technologies marks a significant milestone — both for India’s data-centre ecosystem and for Meta’s global infrastructure strategy. With a massive investment and strategic positioning, the deal emphasises the growing importance of India in AI compute, connectivity and hyperscale infrastructure.
