Carrier Global to invest ₹863 cr in chiller making plant in Andhra Pradesh

New Delhi: In a significant step towards building a full-stack data centre ecosystem in Andhra Pradesh, Carrier Global will set up a state-of-the-art manufacturing facility for chiller and cooking systems at Sri City near Tirupati.

The project aligns with Andhra Pradesh government’s focus on building a complete data centre supply chain within the state. The southern state has set a target of hosting capacity of 6 GW. Carrier Airconditioning & Refrigeration Limited will invest Rs 863 crore in the project, which is expected to generate 721 job. The project marks a strategic pivot by the state of moving beyond attracting hyperscale data centres to localising critical infrastructure manufacturing, with chillers forming the backbone of data centre cooling systems.

A senior state government official, who did not wish to be identified, told ET, “As global tech giants scale up AI-driven infrastructure, cooling systems have emerged as critical components. This investment will help in backward integration in the data centre value chain.”


In large-scale data centres, which are coming up in Andhra, cooling accounts for a significant share of operating costs and efficiency. By localising chiller manufacturing costs can be reduced, supply chains become more resilient and innovation can be tailored for local grid conditions.

The Carrier facility will manufacture a wide range of advanced cooling solutions, including air-cooled data centre chillers, water-cooled centrifugal and screw chillers and ducted solutions. This comes at a time when Andhra Pradesh is already attracting tech giants and is now working to ensure that value creation doesn’t stop at land and power but extends into manufacturing and supply chains.

The Sri City unit will be a greenfield facility spread across 39 acres, with operations slated to begin by December 2027 and full ramp-up by November 2028. The official quoted above said, “The project includes 15 advanced testing labs and a chiller testing facility, which is among the largest in India.”

The project qualifies under the AP Electronics Manufacturing Policy 4.0 (2024–29), with incentives including up to 35% capital subsidy (linked to employment and value addition), power cost reimbursements, full state GST and stamp duty reimbursements.