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Reliance bets $17B on India's largest AI data center hub
28 Apr 2026

Reliance Industries Limited (RIL) will invest ₹1.6 lakh crore ($17 billion) to build a 1.5GW data center cluster and solar battery storage system in Visakhapatnam, Andhra Pradesh.

The project, which is expected to be India's biggest data center hub, will outdo Google's 1GW facility being built in the same area with an investment of $15 billion.

RIL has sought 935 acres for the project
Approval details

The Andhra Pradesh Investment Promotion Committee approved RIL's investment at a meeting last Saturday.

The company plans to set up a "giga-scale AI (artificial intelligence) data center cluster" in three phases.

It has sought 935 acres for this project—300 acres for the first phase and 635 acres for the second phase—with an additional acre for a cable landing station and 80 acres for a desalination plant.

When will the data centers be ready?
Project phases

In the first phase, a 500MW data center will be set up at Polipalli village. It is expected to start commercial production by October 2028.

The second phase will see a total capacity of 1GW come up at Bhogapuram East and West by 2030.

The entire cluster will be located near Visakhapatnam's new airport at Bhogapuram.

Google, Sify, and other companies are setting up data centers
Growing hub

Visakhapatnam is witnessing a data center boom, with Google recently announcing a $15 billion investment in a 1GW cluster.

Other companies like Sify (500MW), Digital Connexion (1GW), and Anant Raj Cloud (about 300 MW) also have projects in the pipeline.

Two more MoUs have been signed for data centers with RMZ (1GW) and Tillman Global Holdings (300MW).

Andhra Pradesh aims for a hosting capacity of 6GW
Policy benefits

In September 2025, Andhra Pradesh IT minister Nara Lokesh said the state aims for a hosting capacity of 6GW.

RIL's proposed project brings the state closer to its goal, with MoUs signed for data centers with a total capacity of 5.6GW.

The state offers several incentives under its Data Center Policy 4.0, including 100% state GST reimbursement on capital goods and deemed distribution licenses for direct energy procurement for data center projects with a minimum capacity of 300MW.