VISAKHAPATNAM: After a long hiatus, the proposal to set up a data centre by the Adani Group in Vizag with an estimated investment of over Rs 14,000 crore has gained pace. The State government has issued orders alienating 130 acres of land in survey number 409 in Kapuluppada.
The Visakhapatnam Metro Region Development Authority (VMRDA) has given approval for the layout of the data centre. A VMRDA planning official told TNIE that as per the GO, they have given approval for the data centre layout plan following the proposal made by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
He said further approvals with regard to the buildings and structures for the data centre will be given by the GVMC as the area is under its jurisdiction.The data centre is likely to generate employment for over 24,000 people once it is fully commissioned. Adani Group has already set up a special purpose vehicle, Vizag Tech Park, for setting up the data centre. The government has approved the proposals for setting up a 200 mw data centre in 82 acres, IT business park in 28 acres, skill development university in 11 acres and recreation park in nine acres. Besides, the government has agreed to give concessions in electrical tariff for 20 years.
As per the agreement, Adani Group has to complete the 200 mw data centre project in seven years, in phases. To make the project a reality, the government has facilitated utilising services of the AP Electronics and Information Technology Agency, consultative committee for the Industry and APIIC.The mega data centre will give a big push to IT development in the Steel City as it will generate 24,990 jobs. The Adani Group will invest Rs 14,634 crore on the data centre in seven years after commencement of construction of the centre.
Earlier, the Adani Group signed an agreement with the Andhra Pradesh government in the first week of January in 2019 to develop a Rs 70,000 crore project, completely backed by renewable energy. Foundation for the project was laid by the then chief minister N Chandrababu Naidu just a few hours before the notification was issued for the 2019 elections. After the YSRC came to power, there were doubts over the data centre project.
However, putting speculations to rest, the State Investment Promotion Board has given its green signal for the project in 2020.Speaking to TNIE, IT Association of Andhra Pradesh president Sredhar Kosaraju said it was an opportune time to give a big push to the industry in the city. He said even during Covid pandemic, 10,000 employees were added in the IT sector in Visakhapatnam. Software firms faced hiccups in the initial six months of the Covid pandemic and later the sector emerged as the most booming sector.
“It is the right time to change the BPO tag of Vizag by attracting product companies. There is a need for creating an ecosystem to attract big ticket companies. The Adani data centre will be a game-changer for the IT growth in the Port City,” Kosaraju observed.