The Andhra Pradesh government has formally approved the transfer of 480 acres of land to Adani Infra (India) Private Limited for the establishment of a large-scale AI-driven data centre cluster in Visakhapatnam and Anakapalli districts. The decision, documented in the government order issued on December 2, follows the approval of the state cabinet during its meeting on November 28, 2025. The allocation marks a significant milestone in the state’s strategy to position itself as an emerging hub for advanced digital infrastructure.
Partnership With Google’s Raiden Infotech India
Raiden Infotech India Pvt. Ltd, a Google India entity, has been progressing with its phased expansion of data centre ecosystems across the country. In its representation to the state government, the company requested that all identified land parcels be officially allotted to Adani Infra (India), its notified partner responsible for primary development. This partnership is expected to integrate global design and operational standards, with the project being built to the same technical benchmarks that power Google platforms such as Search, YouTube, and Workspace.
Investment Scale and Incentive Framework
According to the details submitted to the state, Raiden Infotech plans to invest approximately ₹87,500 crore in the Andhra Pradesh project. Over the project lifecycle, the company and its partner entities are expected to receive around ₹22,000 crore in state incentives, aligned with commitments made under earlier industrial promotion frameworks. Raiden has also requested that the government extend these incentives to its notified partners, ensuring consistent policy support for the entire cluster.
Land Transfer and Operational Conditions
The allocated 480 acres span designated sites prepared by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). Adani Infra will receive possession following completion of survey procedures and formal handover processes. This land transfer enables the consortium to begin preparatory work for the phased construction of a 1 GW data centre capacity—an unusually large and energy-intensive infrastructure commitment by national standards.
Electricity Consumption and Infrastructure Impact
Data centres are typically assessed by the electricity they consume rather than by floor area alone. The proposed 1 GW facility’s power demand is estimated to be equivalent to nearly half of Mumbai’s annual electricity usage. This scale underscores the strategic significance of the project, which will necessitate substantial enhancements to local power networks, substation capacity, and transmission infrastructure. State authorities are expected to coordinate closely with energy departments to ensure adequate supply and integration.
Strategic Importance for Andhra Pradesh’s Digital Economy
The establishment of such a large-scale AI data centre is anticipated to expand the state’s digital infrastructure competitiveness. The project aligns with national priorities involving cloud capacity, AI processing, and data sovereignty, while enabling Andhra Pradesh to attract additional technology investments. With global cloud companies increasing their regional infrastructure footprints, the project may position Visakhapatnam as a significant node in India’s digital economy.
A Landmark Infrastructure Approval
The Andhra Pradesh government’s decision to allocate 480 acres for the AI-based data centre cluster reflects its commitment to high-value digital ecosystem development. As Adani Infra and Raiden Infotech begin phased implementation, the project is expected to bring long-term economic, technological, and infrastructural advantages to the state. With extensive investment, global technology standards, and a strategic partnership framework, the development marks one of the state’s most ambitious digital infrastructure initiatives to date.