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Under its Data Centre Policy 4.0, Andhra Pradesh offers a slew of incentives to attract investments, including 100% state GST reimbursement on capital goods.
After Google-Adani, Reliance Industries to set up AI data centre hub in Vizag for $17 billion.(REUTERS)Reliance Industries is set to invest $17 billion (or ₹1.6 lakh crore) to build a 1.5-gigawatt data centre cluster in Visakhapatnam, Andhra Pradesh, The Economic Times has reported. Once set up, it is expected to be India’s largest data centre cluster, after Google’s 1GW facility being built at a cost of $15 billion in the same region.
The investment was approved by Andhra Pradesh’s Investment Promotion Committee at a meeting held on 25 April, the newspaper reported citing sources.
RIL’s Data Centre Cluster
Reliance Industries has sought 935 acres for the cluster and plans to build the facility in three phases — 300 acres for the first phase, 635 acres for the second phase. This is in addition to 1 acre for a cable landing station and 80 acres for a desalination plant.
The project is set to come up near the new Bhogapuram airport in Visakhapatnam. It will also house a captive solar battery storage system — an on-site, user-owned solar power generation and storage facility designed to meet specific electricity needs and reduce dependence on the power grid.
In the first phase, the company aims to set up a 500MW data centre at Polipalli village and expects to start commercial operations by October 2028. In the second phase, a total capacity of 1GW is slated to materialise.
Vizag’s Data Centre Boom
Visakhapatnam, or Vizag as it is popularly called, has recently attracted a bouquet of investments to set up data centres. Google was among the first to announce a major investment of $15 billion in the region for a 1GW facility. Andhra Pradesh chief minister Chandrababu Naidu laid the foundation stone of the project Tuesday, 28 April.
In fact Google and Adani Enterprises, through its joint venture company AdaniConneX, announced a landmark partnership to build the AI hub in Vizag. AdaniConneX, a 50:50 JV between Adani Enterprises and EdgeConneX, was founded with a vision to redefine the data center landscape in India.
“Google’s AI hub in Visakhapatnam is a multi-faceted investment of approximately USD 15 billion over five years (2026-2030), comprising gigawatt-scale data centre operations, supported by a robust subsea cable network and clean energy, to drive the most demanding AI workloads in India. It will be brought to life in close collaboration with ecosystem partners including AdaniConneX and Airtel,” Adani Enterprises had stated in a press release in October last year.
Apart from these, Sify will set up a 500MW data centre, while Digital Connexion aims to build a 1GW facility. Anant Raj Cloud is also slated to establish a 300MW data centre in Vizag. Besides, two more MoUs have been signed with RMZ and Tillman Global Holdings to build data centres of 1GW and 300MW capacities respectively.
Why Vizag?
In September 2025, Andhra Pradesh IT minister Nara Lokesh had said that the state was targeting a hosting capacity of 6GW. The aforementioned projects, including the MoUs as well as major investment announcements by Reliance Industries and Google-Adani partnership, have brought the state closer to its goal.
Under its Data Centre Policy 4.0, Andhra Pradesh offers a slew of incentives to attract investments. These include 100% state GST reimbursement on capital goods, 10% capital subsidy on machinery and deemed distribution licenses for direct energy procurement for data centre projects with capacity of at least 300 MW.
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