Bhogapuram Corridor Emerges as AI Hub with Reliance’s Rs 1.08 Lakh Crore Proposal

The Andhra Pradesh government has cleared one of India’s most ambitious digital infrastructure proposals, approving nearly 855 acres of land in Vizianagaram district for a massive AI-focused data centre campus by Reliance Industries. The project, involving a proposed investment of Rs 1.08 lakh crore , is expected to position the state as a major hub for AI computing, cloud infrastructure and global data connectivity .

According to a Government Order issued by IT Secretary Bhaskar Katamneni , the land will be allotted across Polipalli, Bhogapuram West and Bhogapuram East villages at a 25 percent discounted rate under the Andhra Pradesh Data Centre Policy 4.0. Authorities have also been directed to identify additional land for a dedicated Cable Landing Station (CLS) , a critical facility that connects international submarine internet cables to terrestrial networks.

The proposed project stands out not only for its scale but also for its integrated infrastructure model. Unlike conventional data centres focused mainly on storage and cloud hosting, the planned Giga-Scale AI Data Centre (AIDC) is designed to support high-density AI computing workloads requiring enormous processing power, uninterrupted electricity and advanced cooling systems.

Industry experts say the inclusion of a Cable Landing Station could significantly improve international data connectivity from India’s east coast and help transform the Vizag-Bhogapuram corridor into a strategic digital ecosystem capable of attracting hyperscale technology investments.

To secure the project, the state government has approved a wide range of fiscal and non-fiscal incentives. These include 100 percent exemption on stamp duty and registration charges , a 6 percent capital subsidy on machinery and equipment capped at Rs 4,500 crore, and 100 percent SGST reimbursement on construction and leasing costs for ten years.

Additional incentives include a 15 percent water tariff subsidy , power tariff concessions and exemption from cross-subsidy surcharge charges for renewable energy usage. Andhra Pradesh has also assured guaranteed water supply for 20 years, while APIIC will study the feasibility of a desalination plant under possible joint ownership with Reliance.

The mega project is expected to accelerate infrastructure growth, telecom connectivity and indirect employment opportunities in north coastal Andhra Pradesh, though questions around environmental clearances, water usage and local rehabilitation packages are likely to remain under scrutiny as the project progresses.