The Andhra Pradesh government has approved a massive incentive package worth Rs 19,000 crore for Reliance Industries to establish an artificial intelligence data centre in Vizianagaram. This move is part of the state's aggressive strategy to position Visakhapatnam and the north coastal belt as India's premier hub for next-generation AI and hyperscale data centres.
Strategic Location and Infrastructure
The proposed data centre will be located in Vizianagaram, a district in the north coastal region of Andhra Pradesh. The state government is developing a dedicated AI corridor along the Visakhapatnam-Chennai Industrial Corridor, offering world-class infrastructure, reliable power supply, and high-speed connectivity. The incentives include land at concessional rates, power tariff subsidies, and exemption from various state taxes and duties.
Boosting Digital Economy
This investment is expected to create thousands of direct and indirect jobs, boost the local economy, and position Andhra Pradesh as a key player in India's digital transformation. Reliance's AI data centre will support cloud computing, machine learning, and big data analytics, serving both domestic and global clients. The project aligns with the state's vision to become a $1.5 trillion economy by 2047.
Government's Commitment
Chief Minister N. Chandrababu Naidu emphasized that the incentive package reflects the state's commitment to fostering a business-friendly environment. He stated that the AI data centre will catalyze innovation, attract ancillary industries, and enhance the state's competitiveness in the global technology landscape.
Industry Reactions
Industry experts have welcomed the move, noting that Andhra Pradesh is emerging as a preferred destination for data centre investments due to its strategic location, renewable energy potential, and proactive government policies. Reliance's investment is seen as a vote of confidence in the state's infrastructure and governance.
The approval comes at a time when data centre demand is surging globally, driven by the rapid adoption of AI, cloud services, and digitalization. With this project, Andhra Pradesh aims to capture a significant share of the growing market.
