AP Clears 600+ Acres for Hyperscale AI Data Centres in Visakhapatnam Region

The Andhra Pradesh government has approved an expansion of land allotment to Raiden Infotech India Pvt Ltd , a Google-affiliated company, for the development of a massive AI-driven hyperscale data centre ecosystem in the Visakhapatnam region. The allocation has been increased from 480 acres to 601.4 acres , underscoring the scale of the proposed investment estimated at nearly ₹90,000 crore and reinforcing the state’s ambition to position itself as a national hub for digital infrastructure and artificial intelligence computing.

The land is being allotted by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) in favour of Adani Infra (India) Ltd , the notified partner for project execution. The revised distribution includes parcels at Tarluvada , Adavivaram–Mudasarlova , and Rambilli across Visakhapatnam and Anakapalli districts. The facilities will be developed with support from AdaniConneX and associated infrastructure partners to create advanced cloud, AI processing, and large-scale data storage campuses designed for global hyperscale operations.

The project is expected to deliver substantial economic benefits. During construction and operational phases, it could generate thousands of direct jobs in engineering, data infrastructure, electrical systems, and facility management, while also creating extensive indirect employment through logistics, maintenance services, security, and local supply chains. Industry estimates suggest up to 10,000 direct and indirect employment opportunities , with additional long-term benefits for regional startups and technology service providers.

Given the energy-intensive nature of hyperscale computing, the planned ecosystem is projected to require power capacity approaching 1 gigawatt (GW) when fully operational. This level of demand will necessitate robust grid connectivity, dedicated substations, and increasing integration of renewable energy sources to ensure sustainability and reliability. Advanced cooling technologies and efficient energy management systems are expected to be incorporated to meet global efficiency benchmarks.

From a regulatory standpoint, the development will require environmental and statutory clearances covering land use, power infrastructure, cooling systems, and water management. Project planners have indicated an emphasis on sustainable practices, including water recycling, energy-efficient cooling, and green infrastructure components to meet environmental compliance norms and international sustainability standards.

Construction is expected to proceed in phased stages following final land transfer and approvals. Early site preparation and infrastructure planning are anticipated to begin soon, with phased commissioning aligned to India’s rapidly growing demand for AI computing and cloud capacity. Major operational capabilities are projected to come online by 2028 , with expansion phases likely to follow as demand scales.

The project will benefit from incentives under Andhra Pradesh’s IT and data centre policies, including capital subsidies, tax incentives, power tariff concessions, and infrastructure support . These incentives reflect the state’s proactive strategy to attract hyperscale digital infrastructure investments and build a competitive ecosystem for global technology companies.

Local industry bodies and business groups have broadly welcomed the initiative, viewing it as a transformative step toward making Visakhapatnam an AI, cloud computing, and digital innovation hub . The project is expected to boost submarine cable connectivity, attract global technology firms, and strengthen the region’s digital economy. However, some civic groups and residents have expressed concerns regarding energy consumption, environmental impact, land use changes, and water resource management , calling for transparency and sustainable implementation.

With its coastal advantage, expanding fibre connectivity, and strategic location on international data routes, Visakhapatnam is emerging as a critical gateway for India’s digital future. The hyperscale data centre ecosystem is poised to support artificial intelligence workloads, cloud services, fintech platforms, e-governance systems, and industrial automation , reinforcing Andhra Pradesh’s vision of becoming a leading destination for next-generation technology infrastructure.