The data center subsidiary of Indian real estate company Anant Raj may build a data center in Andhra Pradesh.

On November 14, Anant Raj Cloud Private Limited (ARCPL) signed a memorandum of understanding with the State of Andhra Pradesh, which will see ARCPL invest Rs 4,500 crores ($507m) in two phases for a data center in the southern Indian state.

Details about the facility’s size, location, and development timeline were not disclosed.

Andhra Pradesh is not a major data center hub, but has been attracting increasing investment. The majority of the state’s data centers are based in the coastal city of Visakhapatnam, also known as Vizag.

In October, Google announced that it would spend $15 billion on data centers and other kinds of digital infrastructure in the Indian state. Reports about the capacity of the hub have suggested that this could top 1GW across three linked data centers located in and around Visakhapatnam.

In the same month, Indian data center operator Sify also broke ground on a data center and a cable landing station in the same city.

Anant Raj was founded in 1969 and has traditionally focused on residential, commercial, retail, and hospitality projects.

ARCPL was established in 2023 as the real estate development firm’s data center subsidiary. It is one of many data center businesses formed by large Indian companies looking to capitalize on the country’s appetite for AI – one such arrangement was established earlier this month as Indian conglomerate Tata launched its subsidiary HyperValt AI Data Center Limited.

DC Byte’s April 2025 report on India’s data center market shows that the majority of the country’s 8.9GW worth of data center supply is constituted by projects currently in their early stages, and a report published by JLL in November 2024 estimated that the country’s data center capacity would surge 66 percent by 2026.