After Google, Reliance Steps In: Why Andhra Pradesh Is Becoming India’s AI Infra Hub

Reliance Industries is set to invest ₹1.6 lakh crore, or over $17 billion, in a 1.5-gigawatt (GW) data centre cluster in Visakhapatnam, Andhra Pradesh, in what could become the largest such facility in India, according to a report by the Economic Times.

The investment also includes a captive solar battery storage system. It is to be noted that Andhra Pradesh's Investment Promotion Committee approved the proposal at a meeting on April 25, the report added.

Bigger Than Google

The planned cluster would eclipse Google's 1 GW data centre project being set up in the same region, for which the American tech giant has committed $15 billion. Google's facility is scheduled to formally launch on April 28, 2026.

Reliance's project, described as a "giga-scale AI data centre cluster," will come up in three phases near Visakhapatnam's upcoming Bhogapuram airport. The company has sought 935 acres for the cluster — 300 acres for the first phase and 635 for the second — along with 1 acre for a cable landing station and 80 acres for a desalination plant.

In the first phase, a 500 MW data centre will be set up at Polipalli village, with commercial production expected to begin by October 2028. The second phase, which will bring total capacity to 1 GW, is planned at Bhogapuram East and West by 2030.

A Growing Data Centre Hub

Reliance is not alone in betting on Andhra Pradesh. The state has drawn a string of major investments in data centre infrastructure in recent years.

Apart from Google and Reliance, Sify Technologies is setting up a 500 MW data centre in the region. Digital Connexion and Anant Raj Cloud have projects of 1 GW and around 300 MW in the pipeline, respectively. The state has also signed memoranda of understanding with RMZ for a 1 GW facility and Tillman Global Holdings for a 300 MW one, both in Visakhapatnam.

Together, MoUs signed so far account for data centre capacity totalling 5.6 GW, bringing the state close to its stated target of 6 GW. Andhra Pradesh IT Minister Nara Lokesh had announced that target in September 2025.

Why Andhra Pradesh?

The state has been actively courting data centre investors through its Data Centre Policy 4.0, which offers a range of incentives.

These include a 100% reimbursement of state GST on capital goods, a 10% capital subsidy on machinery, and deemed distribution licences that allow companies to procure energy directly. The direct energy procurement benefit applies to projects with a capacity of at least 300 MW.