Reliance Industries is set to establish a large AI-focused data centre cluster in Visakhapatnam, marking one of the biggest digital infrastructure projects announced in India in recent years.
According to project details cleared by the Andhra Pradesh State Investment Promotion Board (SIPB), the proposed facility is expected to have a planned capacity of 1.5 gigawatts (GW) and involve investments estimated at around ₹1.6 lakh crore.
The project is expected to be developed near the upcoming Bhogapuram International Airport in multiple phases. Officials said the first phase, with an estimated capacity of 500 MW, is planned at Polipalli village and is expected to become operational by 2028. Additional phases are proposed at nearby Bhogapuram East and West locations, with full capacity targeted by 2030.
The proposed development will also include supporting infrastructure such as a cable landing station and a desalination facility intended to meet the cooling water requirements of the data centre operations.
As part of the broader infrastructure plan, Reliance is also expected to invest in renewable energy and battery storage systems to support uninterrupted power supply for the facility. Officials associated with the project said renewable energy installations would form an important part of the long-term operational strategy.
The project is expected to support artificial intelligence, cloud computing and large-scale digital processing requirements. Industry observers say such facilities are becoming increasingly important as demand for AI computing infrastructure grows globally.
The Andhra Pradesh government has introduced policies aimed at attracting large-scale data centre investments, including incentives related to infrastructure and technology development. Visakhapatnam’s coastal location, access to subsea cable connectivity and expanding transport infrastructure are seen as strategic advantages for the sector.
Several technology and infrastructure companies have also announced interest in data centre expansion projects in the region, contributing to Visakhapatnam’s emergence as an important digital infrastructure hub.
Experts believe the project could generate employment opportunities in construction, engineering, technology and related services during different phases of development.
