Union Information and Broadcasting Minister Ashwini Vaishnaw along with Union Finance Minister Nirmala Sitharaman, Andhra Pradesh Chief Minister N. Chandrababu Naidu, Andhra Pradesh Chief Minister Nara Lokesh and Google representatives during ‘Bharat AI Shakti’, an event organized by Google, in New Delhi on October 14, 2025. | Photo credit: ANI
In a major boost to Andhra Pradesh’s digital infrastructure ambitions, the state government has approved an incentive package of ₹22,002 crore and allotment of 480 acres of land to Raiden Infotech India Pvt. Ltd. for setting up AI data centers worth ₹87,520 crore in Visakhapatnam and Anakapalli districts.
The consent issued through NV No. 40 of the Department of Information Technologies, Electronics and Communications (IT, E&C) is governed by the recommendations of the State Investment Promotion Board (SIPB) and the Council of Ministers.
Also read | Google subsidiary Raiden Infotech to set up ₹87,520 crore data center in Vizag
As part of fiscal incentives, the government approved a 25% discount on the price of land; 10% capital subsidy on plant and machinery for 10 years (capped at ₹2,129 crore); 100% exemption from stamp duty and registration fees; SGST refunds on construction and leasing for 10 years (₹3,990 crore combined); ₹1/unit subsidy on power tariff for 15 years; 100% exemption from electricity tax, transmission charges and renewable cross subsidy charges for 15-20 years and 25% water tariff subsidy for 10 years. The total incentive expenditure sanctioned by SIPB is ₹22,002 crore.
The project envisages the development of over 1,000 MW of advanced data center capacity, which is expected to generate significant direct and indirect employment and strengthen Andhra Pradesh’s position as a leading destination for AI and digital innovation.
Also read | Google to invest $10 billion in data center and AI project in India
Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has earmarked 480 acres at multiple locations, 120 acres at Adavivaram and Mudasarlova, 200 acres at Tarluvada (Visakhapatnam district) and 160 acres at Rambilli (Anakapalli district).
Another plot of up to 15 acres has been earmarked for a landing cable station. Data center investment is expected to spur growth across associated sectors such as construction, IT services, energy and manufacturing, while creating thousands of direct and indirect jobs.
Also read | Nara Lokesh lays the foundation stone for Vizag’s Edge Data Center and Open Cable Landing Station with artificial intelligence
According to the Data Center Policy (4.0) 2024-2029, the state aims to attract major global investment in AI-ready data centers, data embassies and digital parks. The Raiden Infotech project represents one of the largest private investments in Andhra Pradesh’s technology sector so far.
Published – 21 October 2025 12:31 IST
