Carrier to Set up its Chiller Plant in Andhra’s Sri City

The Andhra Pradesh government is going to break ground on a new manufacturing facility by Carrier Global Corporation in Sri City on May 6. The announcement came through an X post by Nara Lokesh, Andhra Pradesh’s Minister for IT, Electronics, and Human Resources Development, who said the plant will produce cooling systems for data centres. 

The project involves an investment of ₹1,000 crore and is expected to generate around 3,000 jobs.

Lokesh said the facility marks a move beyond hosting data centres to manufacturing core components. He added that David Gitlin, Chairman and CEO at Carrier, will attend the event. The company plans to produce chillers, air handling units, and related infrastructure at the site.

Lokesh added that the state aims to “build what powers the data revolution”. He added that Andhra Pradesh is “moving beyond hosting data centres”. The focus now includes producing systems that support data infrastructure.

He said the project aligns with the state’s goal to become a hub for data centre infrastructure. The post also described Andhra Pradesh as “emerging as the data centre capital of India.”

The government expects the project to create both direct and indirect jobs as per the committed number. It also sees the investment as part of a wider push to develop industrial capacity linked to digital infrastructure. The plant will support demand for cooling systems used in data centres. These systems are key to maintaining operations in large-scale computing facilities.

Located in Tirupati district, about 55 km from Chennai, Sri City has emerged as a major industrial zone. It has attracted investments exceeding $4.5 billion and exports above $4 billion. The zone includes a multi-product Special Economic Zone, a Domestic Tariff Zone, a Free Trade and Warehousing Zone, and an electronics manufacturing cluster.

The park hosts over 220 companies from 30 countries across sectors. These include firms such as Isuzu Motors India, PepsiCo, Colgate-Palmolive, LG Electronics, Kimberly-Clark and Foxconn. 

Sri City also benefits from transport links, including a national highway, nearby ports, airports, and rail access. The zone offers power, water, and plug-and-play factory facilities, along with a single-window clearance system.