Project Fusion: Inside India’s US$4.2bn Sovereign AI Hub

A deal has been signed to develop a large-scale digital infrastructure programme, named Project Fusion, in the Indian state of Andhra Pradesh.

DMC Global Partners Invest confirmed it has been appointed as the lead development manager for the project, which will deliver AI-optimised data centres and Sovereign AI factories.

DMC Global Partners Invest signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) outlining the plans.

The development is supported by FrontierOne AI and will be delivered in two phases. An initial 100MW build, valued at approximately US$1.2bn, will be followed by a 400MW expansion, bringing the total planned investment to more than US$4.2bn.

The programme is part of a national strategy to create highly cyber-secure AI and data infrastructure within India, positioning Andhra Pradesh as a new digital centre.

The build will also include subsea cable landing stations, a high-capacity optical fibre backbone and metro access networks. According to DMC Global Partners Invest, the initiative is expected to create over 1,400 direct roles and more than 15,000 indirect jobs.

Sovereign AI and digital infrastructure

Project Fusion is one of the first large-scale Sovereign AI infrastructure programmes globally to launch in a formal partnership with a state economic development authority.

Sovereign AI factories are infrastructure specifically designed to host and manage AI computing environments within secure, locally controlled facilities. This model allows public sector institutions or sovereign nations to retain full ownership and control over data, systems and AI operations.

Joseph McCaffrey, Chief Executive of DMC Global Partners Invest, says: ”We are honoured to lead Project Fusion with the backing of FrontierOne AI. Sovereign AI factories represent a new area of digital infrastructure growth, enabling nations and enterprises to operate secure, locally stored and controlled AI environments.

”DMC will bring its global development expertise and digital infrastructure experience to ensure this programme is delivered to the highest standards, fully aligned with FrontierOne’s vision and the ambitions of the Andhra Pradesh government.”

A new benchmark for data delivery

DMC Global Partners Invest will manage the entire lifecycle of Project Fusion. Its responsibilities include conducting feasibility studies, planning, design coordination, procurement and overall programme and cost management.

DMC Global Partners Invest will also work with FrontierOne’s international investment partners to coordinate funding and capital allocation across the different development stages.

The project positions Andhra Pradesh as a key location in India’s digital transformation and on the global map for next-generation data infrastructure.

The site will operate as both a data centre facility and a Sovereign AI environment, enabling direct control of AI models, storage and processing at a national level. The secure design of the facilities also meets high-performance computing requirements, aligning with cyber protection standards.

Fostering national cyber capacity

FrontierOne AI described the project as a model for national AI capability and industrial resilience.

Tee Ganbold, CEO of FrontierOne AI, says: ”FrontierOne’s partnership with DMC Global Partners to build in Andhra Pradesh, one of the largest Sovereign AI factories in the world, is tremendously exciting, building on our work with governments globally to develop their national and cyber infrastructure to securely enable the age of AI.

”We are pleased to appoint DMC to lead the development of Project Fusion and to work alongside the Government of Andhra Pradesh in India to deliver a landmark 500MW AI data centre that sets a new benchmark for security, sovereignty and performance in critical digital infrastructure.”

Project Fusion will be developed in close collaboration with the state government, with its delivery aimed at supporting India’s developing AI market and strengthening national cyber capacity.

By embedding ownership and operational control within local structures, the programme prioritises digital sovereignty, job creation and long-term investment in India’s AI and data centre sector.