Reliance Industries to set up India’s largest data centre cluster in Andhra Pradesh
This is expected to be India’s largest data center cluster, dwarfing Google’s 1 GW project in the same region with an investment of $15 billion.
Andhra Pradesh’s Investment Promotion Committee approved the investment in its meeting last Saturday, according to people requesting anonymity.
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RIL plans to set up a “giga-scale artificial intelligence (AI) data center cluster” in three phases, officials said, adding that the company is seeking 935 acres for the cluster (300 acres for the first phase, 635 acres for the second phase), 1 acre for the cable landing station and 80 acres for the desalination plant.
ET’s emailed queries to RIL did not receive a response by press time. According to sources familiar with the proposal, the company will establish a 500 MW data center in Polipalli village in the first phase, and this center is expected to start commercial production in October 2028. A total of 1 GW capacity will emerge in the second phase.
We Promote the Data Center Explosion
This will happen in Bhogapuram East and West by 2030. The entire cluster will be set up near Visakhapatnam’s new airport in Bhogapuram. Visakhapatnam is witnessing a data center boom. Google announced the first major investment in the region of $15 billion in the 1 GW cluster, which will be officially launched on Tuesday.
Additionally, Sify will establish a 500 MW data center. Others in the plan include Digital Connexion (1 GW) and Anant Raj Cloud (around 300 MW). Two more MoUs were signed with RMZ (1 GW) and Tillman Global Holdings (300 MW) to establish data centers in the port city.
In September 2025, Andhra Pradesh IT Minister Nara Lokesh said the state was targeting a hosting capacity of 6 GW. RIL’s proposed project brings the state closer to its target, with memorandums of understanding signed for data centers with a total capacity of 5.6 GW.
The government is offering a host of incentives under its Data Center Policy 4.0, including 100% state GST reimbursement for capital goods, 10% capital subsidy for machinery, and deemed distribution licenses for direct power purchase for data center projects of at least 300 MW capacity.
RIL proposes to invest around ₹1.08 lakh crore in the cluster and ₹51,300 crore in the associated renewable energy project.
The State Investment Promotion Committee has approved a solar energy project that will produce a maximum of 6,600 MW of alternating current, with a total peak capacity of 9,000 MW of direct current panels.
