The ₹1000 crore facility will support advanced chiller production for data centres, AI infrastructure, and high performance computing, as Nara Lokesh says Andhra Pradesh aims to become a global hub for next generation manufacturing
Carrier Global is set to break ground on a ₹1000 crore advanced chiller manufacturing facility at Sri City, marking a major step in Andhra Pradesh’s plan to build manufacturing capacity around data centre and digital infrastructure needs.
The facility is expected to support production of advanced cooling systems used in data centres, AI infrastructure, and high performance computing environments. The move comes as Andhra Pradesh seeks to move beyond hosting data centres and build local capacity for critical components that support the digital economy.
The state has seen major data centre investment momentum, including a planned Google AI data centre hub in Visakhapatnam and proposals from Reliance Industries and other players. With a broader investment pipeline estimated at more than ₹6 lakh crore and a targeted capacity of around 6 GW, the state is positioning itself as a major digital infrastructure destination.
Carrier’s entry adds cooling technology to this plan, especially as thermal management becomes a key requirement for data centres and AI led computing. The state is focusing on areas such as cooling systems, power management, precision engineering, electronics, and control systems to create stronger local supply chains.
Sri City is already emerging as a major hub for HVAC and electronics manufacturing. The region has drawn ₹12000 crore in cooling and air conditioning manufacturing investment, created 25000 direct jobs in the segment, and built a supplier base with ₹4600 crore in investments. It is also projected to account for nearly 60 percent of India’s air conditioner production by 2027.
Nara Lokesh, Minister for IT, Electronics and Communications, and HRD, said, “Andhra Pradesh is not content with being just a host for data centers, we are determined to become the engine that powers them. The groundbreaking of Carrier’s facility at Sri City marks a defining moment in our journey to build a full stack data infrastructure ecosystem, from energy and data centers to the manufacturing of the components that sustain them.”
He added that Sri City, policy support, and the state’s focus on speed and scale are helping Andhra Pradesh position itself as a global hub for next generation manufacturing and digital infrastructure.
The Carrier facility is expected to support supplier networks, exports, and further investment into Sri City, while adding depth to Andhra Pradesh’s data centre and manufacturing plans.
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