In a major boost to Andhra Pradesh’s industrial ambitions, Carrier Global has announced a ₹1,000 crore investment to set up an advanced chiller manufacturing facility at Sri City in Tirupati district. The project’s groundbreaking is scheduled for Wednesday, marking another step in the state’s push to strengthen manufacturing linked to digital infrastructure.
The development highlights Andhra Pradesh’s shift from being only a data centre destination to becoming a hub for manufacturing key components that power the digital economy.
The state is emerging as a strong data centre destination, supported by large investments and a forward-looking policy framework. A major AI data centre hub by Google is being developed in Visakhapatnam with a planned capacity of 1 GW, while Reliance Industries has proposed a 1.5 GW data centre cluster.
Andhra Pradesh currently has an estimated investment pipeline of over ₹6 lakh crore and a targeted capacity of around 6 GW, placing it ahead of the country’s existing capacity. Carrier’s entry is expected to strengthen this ecosystem by introducing advanced cooling technologies essential for next-generation data centres, AI infrastructure and high-performance computing.
The government is working to build a complete value chain that includes cooling and thermal systems, power and energy solutions, precision engineering components, and electronics and control systems. This integrated approach aims to reduce import dependency, boost exports and position India as a global leader in data infrastructure manufacturing.
Sri City has already developed into a key hub for HVAC and electronics manufacturing. Around ₹12,000 crore has been invested in cooling and AC production, creating nearly 25,000 direct jobs. The region’s supplier network has added about ₹4,600 crore in investments and is expected to contribute nearly 60 per cent of India’s AC production by 2027.
The new facility is expected to drive supplier growth, innovation and export-focused manufacturing, further strengthening Sri City’s role in the global supply chain. With strong industrial ecosystems and policy support, Andhra Pradesh aims to establish itself as a global centre for next-generation manufacturing and digital infrastructure.
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