Amaravati: Andhra Pradesh is positioning itself as a future hub for nuclear manufacturing, supply-chain integration and advanced energy infrastructure as India prepares for a new phase of nuclear expansion tied to AI-driven electricity demand, IT and HRD Minister Nara Lokesh said on Monday.
Speaking at the "US Executive Nuclear Mission to India" conference in New Delhi, jointly organised by the Nuclear Energy Institute (NEI) and the US-India Strategic Partnership Forum (USISPF), Lokesh said Andhra Pradesh aims to become a reliable global partner in the future nuclear economy.
The Minister said the state is seeking partnerships in Small Modular Reactors (SMRs), next-generation reactor technologies, modular manufacturing, engineering ecosystems and nuclear supply-chain development.
Positioning Andhra Pradesh as a strategic industrial base, citing its long coastline, port infrastructure, industrial corridors, logistics connectivity and power network, the Minister said the state's policy focus on rapid industrial execution and Speed of Doing Business give it an advantage in attracting long-term energy and manufacturing investments.
The remarks come as Andhra Pradesh simultaneously pursues aggressive expansion in AI-linked infrastructure and clean-energy capacity.
Lokesh said Visakhapatnam is being developed as a major AI and data centre hub, with projects totaling 6 GW of capacity planned in the city. He added that Andhra Pradesh's Integrated Clean Energy Policy aims to attract nearly Rs 10 lakh crore in investments across renewable energy, storage, green hydrogen, transmission systems and grid modernization.
The Minister said future industrial growth cannot rely exclusively on intermittent renewable power, particularly as electricity demand from hyperscale AI infrastructure accelerates globally. "A single hyperscale AI-native data centre consumes electricity comparable to a medium-sized town," Lokesh said, arguing that future semiconductor parks, electronics clusters and AI infrastructure would require stable, round-the-clock baseload power.
He said Andhra Pradesh is pursuing a "full-stack" industrial strategy around data centres, including transformer manufacturing, cooling systems, power electronics, battery-storage ecosystems and semiconductor-linked supply chains.
Lokesh said the state's nuclear ambitions extend beyond electricity generation into precision manufacturing, fabrication ecosystems, engineering services, safety systems and export-oriented industrial capacity.
He argued that nuclear power offers long-term price predictability and insulation from volatile fossil-fuel markets, factors increasingly critical for industries making investment decisions over 20- to 30-year periods.
The Minister also linked the global AI boom to renewed strategic interest in nuclear power, noting that major technology companies are increasingly exploring direct nuclear-energy partnerships to secure reliable electricity supplies.
Calling nuclear energy the next major chapter in India-US strategic cooperation, Lokesh said future collaboration could expand into industrial manufacturing, advanced infrastructure and AI-era energy systems.