Andhra Pradesh Data Center Policy
| Andhra Pradesh Data Center Policy (4.0) 2024–29 | |
|---|---|
| Mission statement | Attract investment in data-centre capacity, including facilities for artificial-intelligence computing |
| Type of project | State investment policy |
| Country | India |
| State | Andhra Pradesh |
| Chief Minister | N. Chandrababu Naidu |
| Ministry | Information Technology, Electronics and Communications Department |
| Launched | 14 November 2024 |
| Website | Lua error in Module:Wikidata at line 446: attempt to index field 'wikibase' (a nil value). |
| Status: Active | |
The Andhra Pradesh Data Center Policy (4.0) 2024–29 is a policy of the Government of Andhra Pradesh intended to encourage investment in data centre infrastructure, including facilities designed for artificial intelligence computing. The policy was approved by the state cabinet in November 2024 and notified by the Information Technology, Electronics and Communications Department through G.O.Ms.No.6 on 14 November 2024.[1]
The policy forms part of a group of industrial policies introduced by the state government for the 2024–29 period. It operates alongside the Andhra Pradesh Industrial Development Policy 4.0 and the Andhra Pradesh Green Energy Policy 4.0.[1] The state government identified artificial-intelligence-enabled data centres, data-centre parks and large-scale "data embassies" as areas it intended to promote.
Background
The Andhra Pradesh cabinet approved the Data Center Policy 4.0 at a meeting chaired by Chief Minister N. Chandrababu Naidu on 6 November 2024. The decision was announced by Information and Public Relations Minister Kolusu Parthasarathy. At the time, the government said that it intended to add 200 megawatts of data-centre capacity and attract investment in facilities with artificial-intelligence capabilities.[2][3]
The policy document cites Andhra Pradesh's coastline, proximity to potential submarine communications cable landing points, port infrastructure and access to conventional and renewable electricity as factors that could support data-centre development.[1] It also acknowledges that data centres consume substantial quantities of power and water and states that their environmental footprint should be reduced.
Objectives and capacity target
The policy seeks to establish an investment framework for new data centres and for the expansion or diversification of existing facilities. Its stated objectives include creating a secure data-centre environment, supporting the state's knowledge and deep-technology sectors and encouraging the co-location of digital infrastructure.[1]
Two capacity figures appear in the government order. The introductory portion states that the policy aims to add 200 MW of capacity, while the annexed policy describes a target of "few hundred" megawatts, up to 1 GW, during the policy period.[1] The cabinet announcement reported in November 2024 used the 200 MW figure.[4]
The policy applies throughout Andhra Pradesh to enterprises establishing new units and to existing enterprises undertaking expansion or diversification. It is valid for five years from its notification or until a replacement policy is announced, whichever is later.[1]
Incentives
The policy provides for either reimbursement of the net State Goods and Services Tax paid on capital goods or a capital subsidy equal to 10 per cent of expenditure on plant and machinery. It also provides a 100 per cent stamp-duty exemption on the first sale and permits industrial electricity tariffs for qualifying facilities.[1]
Other provisions include possible relaxation of parking and building requirements, permission to stack backup generators, dual-grid power arrangements through a public–private partnership model and concessions relating to electricity transmission and wheeling charges. Data-centre parks may also receive benefits under the state's policy for private industrial parks with plug-and-play infrastructure.[1]
Projects qualify for consideration as mega data-centre projects if they have more than 50 MW of capacity or more than ₹5,000 crore (US$700 million) of fixed investment in plant and equipment. Such projects may receive individually negotiated incentives, including discounted land, infrastructure development, transmission concessions and changes to building requirements. These benefits are subject to government appraisal rather than being automatic entitlements.[1]
The policy states that its incentives are to be administered under separate operating guidelines. The Finance Department stated that land offered to private entities at discounted prices should follow the guidelines of the Andhra Pradesh Land Management Authority.[1]
Administration
The State Investment Promotion Board is responsible for final decisions concerning major investments and mega projects. A State Investment Promotion Committee advises the board on proposed incentives and policy changes. The Consultative Committee for Information Technology and Electronics Industry, comprising government and industry representatives, also participates in implementing the policy.[1]
Implementation
In October 2025, the State Investment Promotion Board approved a hyperscale data-centre proposal associated with Google in Visakhapatnam. The proposed investment was initially reported as US$10 billion, with the state government projecting economic and employment benefits from construction, data-centre operations and related industries.[5] Google subsequently announced an investment of US$15 billion over five years in an artificial-intelligence hub in Visakhapatnam incorporating gigawatt-scale data-centre operations, energy infrastructure and a submarine-cable gateway.[6]
In 2026, the state approved a customised incentive package for a proposed Reliance Industries artificial-intelligence data centre and cable-landing station in Vizianagaram district. The package was granted under the Data Center Policy 4.0 and included land, capital, tax and electricity-related incentives.[7][8][9]
The government later granted land and individually negotiated incentives to projects proposed by Data Centre Holdings India and Renew AP Green Data Center. The two proposals had a combined stated capacity of 1,486 MW, exceeding the capacity targets contained in the original 2024 policy document.[10]
In April 2026, Andhra Pradesh announced plans to allow data-centre developments with a connected load of at least 300 MW to operate internal electricity-distribution systems. The framework requires at least 51 per cent of their electricity to be obtained from renewable sources.[11]
Environmental considerations
The growth of proposed data-centre capacity around Visakhapatnam has prompted discussion about electricity requirements, water consumption and the cumulative environmental effects of large data-centre clusters. The Hindu quoted officials of the state distribution company and a non-governmental organisation who questioned the availability of power and water and the disclosure of agreements between the government and the companies, while a deep-technology expert said that data centres were needed to meet growing demand for cloud and artificial-intelligence computing.[12]
See also
- Economy of Andhra Pradesh
- Data centre industry in India
- List of data centre policies in India
- Information technology in India
- Google data centers
References
- ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 Andhra Pradesh Data Center Policy (4.0) 2024–29 (PDF) (G.O.Ms.No.6, Information Technology, Electronics and Communications (Promotion Wing) Department). Government of Andhra Pradesh. 14 November 2024. Retrieved 25 September 2026.
- ↑ "Cabinet nod to key policies, Land Act". The New Indian Express. Express News Service. 7 November 2024. Retrieved 25 September 2026.
- ↑ "Andhra Pradesh Cabinet approves three major policies for data centres, semiconductors, and drones". tele.net. 8 November 2024. Retrieved 25 September 2026.
- ↑ "Andhra Pradesh Cabinet approves data centre, semiconductor policies". Communications Today. 7 November 2024. Retrieved 25 September 2026.
- ↑ Janyala, Sreenivas (8 October 2025). "Google bets on Visakhapatnam with $10 billion data centre that could generate 1.88 lakh jobs". The Indian Express. Retrieved 25 September 2026.
- ↑ Kurian, Thomas (14 October 2025). "Our first AI hub in India, powered by a $15 billion investment". Google. Retrieved 25 September 2026.
- ↑ Sudhir, SNV (21 May 2026). "Andhra Pradesh offers Rs 19K cr incentives to Reliance for AI Data Centre in Vizianagaram". Deccan Herald. Retrieved 25 September 2026.
- ↑ "Andhra clears 800 acres for RIL's ₹1 trn AI data centre in Vizianagaram". Business Standard. Press Trust of India. 20 May 2026. Retrieved 25 September 2026.
- ↑ "Reliance's ₹1.08 Lakh Cr Andhra AI data centre gets 854-acre approval". DQ India. 23 May 2026. Retrieved 25 September 2026.
- ↑ Peri, Usha (24 August 2026). "Two major data centres get land and incentives in Andhra Pradesh". The New Indian Express. Retrieved 25 September 2026.
- ↑ Sharma, Nidhi (23 April 2026). "Andhra Pradesh to issue power distribution licences to large data centres". The Economic Times. Retrieved 25 September 2026.
- ↑ Bhattacharjee, Sumit (2 January 2026). "Are data centres proposed in Vizag a boon or bane?". The Hindu. Retrieved 25 September 2026.
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