BENGALURU, November 21, 2025 – Meta Platforms is set to partner with Sify Technologies on a 500-megawatt AI-focused data center in Visakhapatnam, Andhra Pradesh, marking the social media giant’s first major lease of hyperscale infrastructure in the country.

The project, estimated at ₹15,266 crore, will cater to Meta’s growing AI compute needs amid India’s surge as a global digital hub.

Sify, a Nasdaq-listed provider of cloud and data services, will invest the funds to construct the facility in Paradesipalem village, about 25 kilometers from Visakhapatnam on the Kolkata-Srikakulam highway.

Meta will act as the primary end user, leasing the space for its platforms, including Facebook, Instagram, and WhatsApp. The deal also incorporates Meta’s “Waterworth” subsea cable system, which will land at Sify’s nearby station to enhance low-latency connectivity for AI workloads.

“Meta will be the end user. Sify will develop the data centre and all related infrastructure till the racks,” a source familiar with the discussions told the Economic Times . Details on racks and processing units remain under negotiation.

This collaboration fits into Andhra Pradesh’s aggressive push to build a 6 GW data center ecosystem by 2028, with land offered at ₹0.99 per acre to attract investors.

The state has already secured commitments: 1 GW from Google, another 1 GW from Reliance Industries, and a separate 50 MW edge facility from Sify in Madhurawada, as reported by ET Government. Minister Nara Lokesh has projected 200,000 direct and indirect jobs from 1 GW of capacity alone.

India’s data center market is on a tear, with operational capacity exceeding 1.5 GW as of September—53% in Mumbai—fueled by over 900 million internet users and data localization mandates.

ICRA forecasts a doubling to 2.5 GW by 2027-28, requiring ₹90,000 crore in investments, while Colliers India eyes 3.5-4.5 GW by 2030 at $25-30 billion. Competitors like TCS and AdaniConneX are also scaling, with TCS eyeing a $2 billion joint venture for 1 GW.

For Meta, the facility supports its “Superintelligence” initiative and regional expansion, including renewable energy tie-ups. Sify, planning a 2026 local listing, gains a marquee client to bolster its AI-ready portfolio.

The Visakhapatnam project could accelerate India’s shift toward self-reliant AI infrastructure, but it will test the state’s power grid and regulatory framework as demand outpaces supply.