AP govt allocates 480 acres for 1 GW AI data center in Vizag region

The Andhra Pradesh government has accelerated plans for a massive AI data center project by approving the allocation of 480 acres of land in the Visakhapatnam-Anakapalli region. The land has been allotted to Adani Infra (India) Pvt. Ltd., which will develop the facility in partnership with Raiden Infotech India, a company associated with Google. The proposed data center will have a total power capacity of 1 gigawatt, placing it among the largest digital infrastructure projects in the country.

Raiden Infotech previously informed the state that several companies - Adani Infra, AdaniConnex, Adani Power India, Bharti Airtel, Nxtra Data and Nxtra Vizag - would participate in the project as its notified partners. The company also requested that land identified by Andhra Pradesh Industrial Infrastructure Corporation (APIIC) in three locations be handed over to Adani Infra, the lead partner. With cabinet approval granted on November 28, the government issued orders on December 2 formally clearing the land transfer.

The data center will be developed in phases, and Raiden Infotech is preparing to invest more than ₹87,500 crore in the project. Under state incentive schemes, the government is expected to extend benefits worth around ₹22,000 crore to the company and its partner firms. The government has responded positively to the request to include all the notified partners within the incentive structure.

According to the government order, the proposed data center will follow international standards similar to those that support Google’s major platforms such as Search, YouTube and Workspace. A 1-gigawatt data center represents an extremely high-capacity facility, capable of consuming power equivalent to nearly half the annual electricity usage of a large city like Mumbai. Chief Minister N. Chandrababu Naidu recently noted that Google has increased its India investment commitment from $10 billion to $15 billion, reflecting the company’s growing interest in expanding digital infrastructure.

A data center of this scale requires thousands of servers, advanced cooling systems and continuous 24/7 operations, which is why its capacity is measured based on electricity consumption. Because it is designed to handle intensive workloads related to artificial intelligence, machine learning and cloud services, the facility will be one of the most advanced in the country.

The project is expected to generate significant benefits for the state. Large-scale investments will strengthen Andhra Pradesh’s economy, and the construction and operation of the data center will create thousands of direct and indirect jobs. Local workers are likely to find new opportunities in IT, engineering, maintenance and security services. The participating companies, especially Adani Infra and Raiden Infotech, will gain long-term business and revenue advantages from the project.

The utilization of APIIC-developed lands will support further industrial growth in the region and help position Visakhapatnam as a major digital and AI hub in South India. Strengthened technological infrastructure will also contribute to a more advanced digital ecosystem across the state. Overall, the project promises economic growth, improved employment opportunities and expanded technological capacity, making it beneficial for the government, the industry and the public alike.