Andhra Pradesh Approves Rs313.87 Billion Green AI Data Centre

The Andhra Pradesh cabinet has approved a 512-megawatt green integrated artificial intelligence (AI) data centre by AM Intelligence at Bheemunipatnam in Visakhapatnam district, with an investment of Rs313.87 billion, trade publication Indian Infrastructure reported on Thursday (Nov 12).

The publication described the AI data centre as the biggest decision among a range of large investment proposals, new industrial policies and administrative reforms cleared by the southern Indian state’s cabinet, aimed at drawing technology-led industries, strengthening infrastructure and creating jobs.

More AI infrastructure approvals

The cabinet also cleared about 25 acres at Bhogapuram in Vizianagaram district for Reliance Industries’ giga-scale AI data centre, according to Indian Infrastructure.

An Epack AI data centre equipment manufacturing unit will come up at Rambilli in Anakapalli district with an investment of Rs5.7 billion, and is expected to create around 2,565 jobs. The cabinet further approved land allotment to Dixon Technologies in Tirupati for a Rs7 billion project, and amendments to the draft AP Semiconductor and Display Fab Policy 2024-29.

Naidu says Google hub on track

The approvals came as Chief Minister N. Chandrababu Naidu told Bloomberg in an interview in Visakhapatnam on Wednesday (Nov 11) that Alphabet’s US$15 billion Google AI hub in the state is on track to begin operations in 2028.

Naidu pledged uninterrupted power and water supplies for the projects despite growing concerns from residents about the strain on resources, Bloomberg reported. Times of AI, citing the interview, said Naidu put the state’s green energy pipeline at about 160 gigawatts, spanning solar power and new transmission lines, with wind, pumped-storage and battery projects also being explored and some thermal power used in the short term.

On water, Naidu said the government was working to boost supplies by interlinking water projects and relying on the Polavaram dam, which is due to be ready by March 2027, according to the same report. It said the YSR Congress Party had questioned whether Visakhapatnam, which already faces water shortages, could handle the Google project.

Google announced the hub on Oct 14, 2025, describing it as its largest investment in India, at about US$15 billion over 2026 to 2030, with AdaniConneX and Nxtra by Airtel leading construction of the buildings, FourWeekMBA reported, citing Google’s India blog.

Blackstone investment flagged

Naidu also said Blackstone will soon announce a data centre investment of about 1 trillion rupees (US$10.7 billion) in Andhra Pradesh, Times of AI reported. In June, Blackstone-backed data centre operator AirTrunk said it would invest US$30 billion in India by 2030, the report added.

What’s next

Naidu said Google’s hub would start operations in 2028, while the Blackstone announcement is expected soon, according to the reports. The chief minister is targeting 15% economic growth for the state, about double the national pace, Times of AI said.

#businessnews