Carrier Breaks Ground on ₹863 Crore Advanced Chiller Manufacturing Facility in Sri City, Andhra Pradesh

 Mumbai : In a major boost to India’s advanced manufacturing and data center infrastructure ecosystem, Carrier today commenced construction of its industrial-grade chiller manufacturing facility in Sri City, Andhra Pradesh, with an investment of over ₹863 crore. The project is expected to create more than 721 direct jobs over 3000 direct and indirect jobs, while significantly strengthening Andhra Pradesh’s emergence as a global hub for advanced HVAC manufacturing, engineering and innovation.

The groundbreaking ceremony was attended by Andhra Pradesh Minister for Education, IT & Electronics Shri Nara Lokesh along with David Gitlin, Chairman & Chief Executive Officer, Carrier Global, and Michael L. Gierges, President, Climate Solutions Asia Pacific, Middle East & Africa.

The upcoming facility will manufacture high-capacity commercial 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 another 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 will 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.

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.

Speaking on the occasion, Shri Nara Lokesh said: “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. Carrier’s investment in Sri City is another strong endorsement of Andhra Pradesh’s speed of execution, industrial ecosystem and long-term manufacturing vision.”

David Gitlin, Chairman & CEO, Carrier Global, said: “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.”

Michael L. Gierges, President, Climate Solutions Asia Pacific, Middle East & Africa, Carrier, said: India is witnessing a once-in-a-generation economic and industrial transformation, and Andhra Pradesh has all the ingredients to be at the forefront of this growth story. With world-class port connectivity, industrial infrastructure and the rapid expansion of AI and data center ecosystems, Sri City is uniquely positioned to become a global manufacturing hub for advanced cooling technologies.”

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.

The groundbreaking represents another major milestone in Andhra Pradesh’s industrial growth story and reflects the convergence of policy stability, infrastructure readiness, industrial clustering and execution-driven governance under the state’s vision for a globally competitive and innovation-led economy.