Amravati: Raiden Infotech India Pvt Ltd, a Google-owned entity, is set to make its largest-ever investment in India by developing gigawatt-scale Artificial Intelligence data centres in Andhra Pradesh, with a cumulative outlay of ₹87,520 crore.

In return, the state government has committed a substantial incentive package worth ₹22,000 crore over time to support the project.

According to a recent Government Order (GO), the tech giant will establish over 1,000 MW of data centre capacity in a phased manner across the Visakhapatnam and Anakapalli districts. These data centres will anchor Google's ambitious plans to build a global AI infrastructure hub in the region, in partnership with the Adani Group.

The Andhra Pradesh government formally signed the multi-billion-dollar deal with Google earlier this week. As part of the agreement, the State Investment Promotion Board (SIPB) recommended a suite of incentives to support the initiative. These were approved by the state cabinet in its meeting held on October 10.

Key highlights of the incentive package pertain to land concessions, fiscal incentives, and power subsidies.

Land concessions

The state will offer a 25% discount on land value, including 160 acres at Rambilli, 120 acres across Adavivaram and Mudasarlova, and 200 acres at Tarluvada.

An additional 15 acres has been earmarked for a landing cable station, subject to project confirmation.

Fiscal incentives

  • 100% exemption from stamp duty and registration charges.
  • 10% capital subsidy on plant and machinery costs for a 10-year period.
  • 100% reimbursement of net SGST accrued to the state during the construction phase, capped at ₹2,245 crore.

Power subsidy

A ₹1 per unit discount on power will be offered for up to 15 years, with a cap of ₹4,800 crore in incentives. The benefit will apply for the first 10 years of operation, extendable by 5 more years if key milestones are met.

The planned 1 gigawatt (GW) data centre facility is expected to consume electricity equivalent to nearly 50% of Mumbai’s annual usage, making it one of the largest of its kind in Asia. Data centre capacity is typically measured in megawatts (MW), based on power usage at full capacity.

Announcing the deal, Chief Minister N. Chandrababu Naidu said that Google's initial investment commitment of USD 10 billion has now been increased to USD 15 billion, underlining the state’s growing appeal as a digital investment destination.

“This partnership marks a major turning point for Andhra Pradesh,” the Chief Minister said. “It will not only generate thousands of direct and indirect jobs but also drive innovation, attract global technology leaders, and establish Andhra Pradesh as a major digital hub both nationally and globally.”

The GO further stated that land and incentive allocations will be processed following approvals from the competent authorities, and all notified partners of Raiden Infotech India will be eligible for the benefits outlined.

PTI