Andhra Pradesh and Google plan a phased data centre revolution

In an unprecedented push to establish Andhra Pradesh as a digital innovation powerhouse, Google’s subsidiary Raiden Infotech India is setting up a future-ready network of hyperscale data centres across the state, with a phased investment exceeding Rs 87,500 crore.

The anchor facility—a gigawatt-scale centre in Visakhapatnam—positions itself not only as India’s largest such project, but among the world’s most ambitious.​ Here is why:

State investment in digital infrastructure is being ‘supercharged’ under a newly approved policy and government order that offers 1,000MW in phased capacity, prime coastal land parcels, and a package of tailored incentives.

If this comes to pass, Andhra looks to position Visakhapatnam as an “AI City” hub.

Incentives in SGST, power

The State Investment Promotion Board (SIPB) capped total incentives for Raiden at Rs 22,002 crore, including capital subsidies, full exemptions on stamp duty and registration, and a 10-year net SGST reimbursement of up to Rs 2,245 crore. These incentives are structured to support rapid scaling while safeguarding state revenue, according to the government order (GO).​

The enabling Land Incentive For Tech Hubs (LIFT) Policy, formalised in August this year, grants strategic land assets at highly concessional rates to certified investors in locations such as Rambilli, Adavivaram, and Tarluvada, and provides up to 15 acres for landing cable stations.

Power tariffs are discounted by Rs 1 per unit for up to 15 years, with the total power subsidy of a max Rs 4,800 crore.​

Google’s India ambitions

These measures have fast-tracked Google’s plans, in parallel with a much-publicised $15 billion commitment for India’s largest AI and cloud infrastructure campus.

Tuesday saw Andhra Pradesh ink the landmark agreement with Google to set up a $15 billion, gigawatt-scale AI data centre in Visakhapatnam. Moreover, the city is also set to host Google’s cable landing station.​

Government officials reportedly said that milestone-based operational incentives will be dispensed over a decade, extendable upon sustained performance.

Andhra’s aggressive policy push has attracted over 1.6GW in approvals as it looks to ride the wave of data centre ‘cluster’ effect. The state has already lowered the barriers to major land, regulatory, and tax approvals, and is on its way to finding an upper hand in the data and cloud services industry.​

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