Meta, the parent company of Facebook, Instagram, and WhatsApp, is expected to collaborate with Sify Technologies to establish a 500-megawatt data center in Visakhapatnam, Andhra Pradesh, according to reports.

Sify plans to invest Rs 15,266 crore to construct the hyperscale data center in Paradesipalem village, located approximately 25 kms from Visakhapatnam city along the Kolkata-Srikakulam highway. This capacity will be rented to Meta.

Meta will additionally bring its ambitious subsea cable initiative ‘Waterworth’ to Sify’s landing station in the region.

“Sify will create the data center and all infrastructure up to the racks,” according to reports.

A data center contains multiple rows of racks equipped with graphics processing units (GPUs) and tensor processing units (TPUs). These processors can be obtained or purchased from a developer like Nvidia. Meta will be the final user.

“Further information regarding investment in racks and processing units is currently being finalized,” as per reports.

This is the first occasion that the Menlo Park-based social media giant will rent extensive data infrastructure in India, seeking to access the world's largest market for AI services and its 'Superintelligence' strategy.

Reports indicate that, alongside leasing data-center capacity, Meta will also bring its multibillion-dollar undersea cable system, Waterworth, to the coasts of Mumbai and Visakhapatnam.

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Extending over 50,000 kilometres, Waterworth is set to be the globe's longest underwater cable system, connecting the US, India, Brazil, and South Africa, and anticipated to enhance international bandwidth and reduce latency.

For Sify, intending to go public on the local stock exchanges in 2026, the collaboration with Meta would represent one of its biggest customer commitments.

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Sify and Google are the initial firms to engage in Andhra Pradesh’s ambitious initiative to create a data centre ecosystem with a capacity of 6GW.

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Google plans to establish a data center cluster with a capacity of 1 GW, while the state government has approved 550 MW for Sify. The company's initial AI data center with a capacity of 50 MW will be established in Madhurawada.