Andhra Pradesh Approves Four Data Center Projects Worth Rs 2.83 Lakh Crore
Andhra Pradesh, India, has approved four data center projects totaling Rs 2.83 lakh crore (approximately $34 billion). Two of the approved projects are focused on artificial intelligence, with significant power requirements.
The Indian state of Andhra Pradesh has greenlit four new data center projects with a combined investment exceeding Rs 2.83 lakh crore (approximately $34 billion). These initiatives include AI-focused facilities and are expected to create thousands of jobs while demanding substantial power capacity.
The state's IT, Electronics and Communications Department approved the projects under its Data Center Policy 4.0. Two facilities are specifically designated for AI: a "giga-scale" AI data center by Google-Reliance Industries in Vizianagaram, and an integrated green AI data center by AM AI Factory in Visakhapatnam. The remaining two projects are classified as general data centers.
The scale of these projects is significant, encompassing approximately 1,488 acres of land and requiring over 3,498 MW of power capacity, representing a considerable portion of the state's peak electricity load. The proposed investment constitutes over 85% of Andhra Pradesh's total annual budget, highlighting the economic magnitude of these developments.
The approved projects include Renew AP Green Data Center (1,000 MW, Rs 85,200 crore investment), Data Centre Holdings India LLP (486 MW, Rs 58,743 crore), AM AI Factory (512 MW, Rs 31,387 crore), and Reliance Industries' AI data center (capacity not specified, Rs 108,010 crore). The state is offering substantial incentives, such as tax exemptions and subsidies, to these ventures.
The approval comes amid rapid growth in India's data center market, driven by increasing demand for both general computing and AI applications. The development of these large-scale facilities may also prompt discussions on environmental impact and resource consumption.