Carrier Global To Set Up Rs 1,000 Crore Facility in Sri City, Tirupati

The project, marking a significant milestone in AP's industrial and digital infrastructure journey and the investment signal the state's strategic shift from being merely a destination for data centres to becoming a hub for manufacturing critical components powering the digital economy.

Andhra Pradesh is rapidly emerging as a major data centre destination, driven by large-scale investments and a forward-looking policy framework, the release said.

A major AI data centre hub by Google is coming up in Visakhapatnam with a planned capacity of 1 gigawatt (GW), while Reliance Industries has proposed a 1.5 GW data centre cluster.

The state has an estimated investment pipeline of over Rs 6 lakh crore and a targeted capacity of around 6 GW, positioning it ahead of the current national capacity. Carrier's entry is expected to strengthen the ecosystem by bringing advanced cooling technologies essential for next-generation data centres, AI infrastructure, and high-performance computing environments.

The government is focusing on building a complete value chain, including cooling and thermal management systems, power and energy solutions, precision engineering components, and electronics and control systems, the minister said. By integrating manufacturing with digital infrastructure, the state aims to reduce import dependency, boost exports, and position India as a global leader in data infrastructure manufacturing.

Sri City has emerged as a major heating, ventilation, and air conditioning (HVAC) and electronics hub, with about Rs 12,000 crore invested in cooling and AC manufacturing and around 25,000 direct jobs created. A strong supplier base has contributed about Rs 4,600 crore in investments, with the region projected to account for nearly 60 per cent of India's AC production by 2027.

The facility is expected to catalyse supplier networks, innovation, and export-oriented manufacturing, reinforcing Sri City's position in the global supply chain. Lokesh noted that with strong industrial ecosystems, policy support, and a focus on scale, Andhra Pradesh is positioning itself as a global hub for next-generation manufacturing and digital infrastructure.