In a landmark move that could reshape India’s AI and digital infrastructure landscape, the Andhra Pradesh government has approved the allotment of nearly 855 acres of land to Reliance Industries Ltd for the development of a giga-scale AI Data Center (AIDC) and Cable Landing Station (CLS) in Vizianagaram district.
The project, carrying a proposed cumulative investment of ₹1,08,010 crore, marks one of the largest AI and data center investments announced in India so far and significantly strengthens Andhra Pradesh’s ambition to emerge as the country’s leading AI and digital infrastructure hub.
Under G.O. Ms No. 30 issued by the IT, Electronics & Communications Department on May 20, 2026, the state approved the allotment of 854.97 acres across Polipalli, Bhogapuram West and Bhogapuram East villages in Vizianagaram district for the project. The proposal also includes a dedicated Cable Landing Station — a critical component that would directly connect Andhra Pradesh to global internet and data traffic networks.
The approval comes as Andhra Pradesh aggressively positions Vizag and the north coastal belt as India’s next-generation AI and hyperscale data center corridor, leveraging abundant renewable energy, port connectivity, subsea cable access, and large land parcels.
Tailor-Made Incentives for Mega AI Investment
The state government has extended a customized package of fiscal and non-fiscal incentives to Reliance under the Andhra Pradesh Data Center Policy 4.0 (2024–29), which was designed to attract advanced AI-enabled data center projects.
Among the key incentives approved:
• 25% discount on land allotment value
• 100% exemption on stamp duty and registration charges
• ₹1 per unit power tariff subsidy for 15 years
• Exemption from transmission and wheeling charges for 20 years
• Electricity duty exemption for 15 years
• SGST reimbursements on construction and leasing
• Water tariff subsidy and long-term water supply support
• OPGW fibre access discounts and right-of-way fee waivers
The government has also directed APTRANSCO to facilitate grid infrastructure development for the campus, while APIC has been asked to explore joint ownership models for a desalination plant to support the project’s long-term water requirements.
AI Infrastructure Race Intensifies
The Reliance project adds fresh momentum to Andhra Pradesh’s fast-expanding AI and data center ecosystem. The state has already positioned itself as a major destination for AI-native data centers and digital infrastructure investments, with plans for several gigawatts of data center capacity across Visakhapatnam and surrounding regions.
The inclusion of a Cable Landing Station gives the project strategic significance beyond a conventional data center investment, potentially enabling Andhra Pradesh to emerge as a major digital gateway for international internet traffic and cloud infrastructure.
The move also aligns with the state government’s broader strategy of building a full-stack digital ecosystem — combining renewable energy, AI infrastructure, advanced manufacturing, subsea connectivity, and electronics supply chains.
Reliance’s proposed investment is expected to create significant direct and indirect employment while catalyzing downstream investments in telecom infrastructure, cloud services, electronics manufacturing, and AI compute ecosystems across the region.