Why India is Building a 500MW AI Data Hub in Andhra Pradesh

DMC Global Partners Invest confirms it is appointed as lead development manager for Project Fusion, a large-scale digital infrastructure programme in the Indian state of Andhra Pradesh. 

The firm signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB), setting out plans to deliver up to 500MW of AI-optimised data centres and Sovereign AI factories.

This development, backed by FrontierOne AI, will roll out in two phases. The first stage introduces a 100MW build valued at around US$1.2bn, followed by a 400MW expansion. The full programme brings the total value to over US$4.2bn.

The plan forms part of a national strategy to develop highly cyber-secure AI and data infrastructure within India, with Andhra Pradesh positioned as a new digital hub. 

The build will include subsea cable landing stations, a high-capacity optical fibre backbone and metro access networks. DMC Global Partners Invest confirms that over 1,400 direct roles and more than 15,000 indirect jobs will be created through the initiative.

Joseph McCaffrey, Chief Executive of DMC Global Partners Invest, says: "We are honoured to lead Project Fusion with the backing of Frontier One AI. 

“Sovereign AI factories represent a new area of digital infrastructure growth, enabling nations and enterprises to operate secure, locally stored and controlled AI environments. 

“DMC will bring its global development expertise and digital infrastructure experience to ensure this programme is delivered to the highest standards, fully aligned with FrontierOne’s vision and the ambitions of the Andhra Pradesh government."

AI factories at the core of new digital strategy

Project Fusion represents one of the first large-scale Sovereign AI infrastructure programmes in the world to launch in formal partnership with a state economic development authority. FrontierOne AI backs the project, describing it as a model for national AI capability and industrial resilience.

Sovereign AI factories refer to infrastructure specifically designed to host and manage AI computing environments within secure, locally controlled facilities.

These factories are purpose-built for sovereign nations or public sector institutions to retain full ownership and oversight of data, systems and AI operations. The secure design also meets high-performance computing requirements, aligning with cyber protection standards.

DMC Global Partners Invest leads delivery of the full lifecycle of Project Fusion, managing feasibility studies, planning, design coordination, procurement and programme and cost management. 

The firm will also collaborate with FrontierOne’s international investment partners to coordinate funding and capital allocation across the development stages.

New benchmark for sovereign data centre delivery

Project Fusion positions Andhra Pradesh as a central location in India’s digital transformation. 

It also places the region on the global map for next-generation data infrastructure that supports artificial intelligence deployment and secure compute power. 

The site will function as both a data centre facility and a Sovereign AI environment, allowing for direct control of AI models, storage and processing infrastructure at a national level.

Tee Ganbold, CEO of FrontierOne AI, says: "FrontierOne’s partnership with DMC Global Partners to build in Andhra Pradesh, one of the largest Sovereign AI factories in the world, is tremendously exciting, building on our work with governments globally to develop their national and cyber infrastructure to securely enable the age of AI. 

“We are pleased to appoint DMC to lead the development of Project Fusion and to work alongside the Government of Andhra Pradesh in India to deliver a landmark 500MW AI data centre that sets a new benchmark for security, sovereignty and performance in critical digital infrastructure."

Project Fusion will be developed in close collaboration with the state government, with delivery aimed at supporting India’s emerging AI market and strengthening national cyber capacity. 

By embedding ownership and operational control within local structures, the build prioritises digital sovereignty, job creation and long-term investment in India’s AI and data centre sector.