VIJAYAWADA: 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 Centre (AIDC) and Cable Landing Station (CLS) in Vizianagaram district.
The project, carrying a proposed cumulative investment of Rs 1,08,010 crore, marks one of the largest AI and data centre 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 state government has extended a customised package of fiscal and non-fiscal incentives to Reliance under the Andhra Pradesh Data Centre Policy 4.0 (2024-29), which was designed to attract advanced AI-enabled data centre projects.
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.
The Reliance project adds fresh momentum to Andhra Pradesh’s fast-expanding AI and data centre ecosystem.
The state has already positioned itself as a major destination for AI-native data centres and digital infrastructure investments, with plans for several gigawatts of data centre capacity across Visakhapatnam and surrounding regions.
The inclusion of a Cable Landing Station gives the project strategic significance beyond a conventional data centre 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 catalysing downstream investments in telecom infrastructure, cloud services, electronics manufacturing, and AI compute ecosystems across the region.
Govt approves major incentives
25 per cent discount on land allotment value
100 per cent exemption on stamp duty and registration charges
Rs 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