Carrier's new manufacturing unit to add to AI Data Centre eco-system in Andhra Pradesh

Hyderabad: Florida headquartered global industrial Air Conditioning major Carrier on Wednesday commenced construction of its industrial-grade chiller manufacturing facility in Sri City, Andhra Pradesh, with an investment of over Rs863 crore. The upcoming facility will manufacture high-capacity commercial Heating, Ventilation, and Air Conditioning (HVAC) chillers exceeding 1,500 TR (tons of refrigeration) in India and house 15 advanced testing and R&D laboratories, positioning Andhra Pradesh at the forefront of high-end industrial cooling systems.

The project marks an important milestone in Andhra Pradesh’s larger strategy to move beyond attracting data centres toward building the full manufacturing ecosystem that powers the AI economy. Over the past year, Andhra Pradesh has rapidly emerged as one of India’s most ambitious destinations for AI and data center infrastructure, with major hyperscaler investments announced in Visakhapatnam. The state is targeting nearly 6 GW of data center capacity and positioning itself as India’s leading AI and digital infrastructure hub.

Carrier’s Sri City facility is expected to play a critical role in this ecosystem by manufacturing advanced cooling solutions essential for high-density AI-driven data centers. Cooling infrastructure is increasingly becoming one of the most critical components of next-generation AI compute facilities globally. IT minister Nara Lokesh who participated in the ground breaking programme outlined a vision to make the state a one-stop hub for all data centre needs.

Lokesh emphasized that the state is not just focusing on attracting data centers but on creating a full manufacturing ecosystem around them. He highlighted the global race in data centers and artificial intelligence, expressing confidence that Andhra Pradesh will lead from the front. He noted that data centers require advanced cooling systems, high-efficiency chillers, power electronics, and precision manufacturing, making it essential to build a strong supporting ecosystem.

Sri City has already evolved into India’s largest air-conditioning manufacturing cluster, producing over 5 million AC units annually and hosting major players including Daikin Industries, LG Electronics, Blue Star and Havells. The cluster currently contributes nearly 35% of India’s AC manufacturing capacity and is rapidly scaling into a global HVAC manufacturing ecosystem. Carrier’s investment is expected to catalyze a broader supplier and component manufacturing network in Andhra Pradesh, accelerating the state’s “Make in India, Make for the World” vision.

“Andhra Pradesh is building far more than data centers - we are building the entire ecosystem that powers the AI revolution. From cooling systems and electronics to advanced infrastructure manufacturing, our goal is to make Andhra Pradesh the data center manufacturing capital of India,” said Lokesh.

Carrier’s investment in Sri City is another strong endorsement of Andhra Pradesh’s speed of execution, industrial ecosystem and long-term manufacturing vision, he added.

“India is now Carrier’s fastest-growing major market globally. With strong economic growth, rapid digital infrastructure expansion and a supportive policy environment, this is the right place for our next phase of manufacturing growth. We are proud to establish this state-of-the-art facility in Sri City and grateful for the extraordinary support extended by the Government of Andhra Pradesh,” said Carrier Global Chairman & CEO., David Gitlin.

The investment comes at a time when India’s HVAC market is projected to grow at over 15% CAGR, driven by urbanization, industrialization, commercial real estate growth and rapidly increasing demand for AI infrastructure.