In a significant boost to Andhra Pradesh’s aspirations in digital infrastructure, the State Government has officially approved a substantial ₹22,002 crore incentive package. This package, alongside the allocation of 480 acres of land, is dedicated to Raiden Infotech India Pvt. Ltd. for the establishment of state-of-the-art, AI-enabled data centers. The total investment for these centers across Visakhapatnam and Anakapalli districts is estimated at an impressive ₹87,520 crore.
This landmark approval, formally documented through GO No. 40 by the Information Technology, Electronics and Communication (IT, E&C) Department, comes after thorough recommendations from both the State Investment Promotion Board (SIPB) and the Council of Ministers.
The comprehensive fiscal incentives include a 25% discount on land cost, a 10% capital subsidy on plant and machinery for a decade (capped at ₹2,129 crore), and a 100% exemption on stamp duty and registration charges. Furthermore, Raiden Infotech will benefit from SGST reimbursements on construction and leasing for 10 years, totaling ₹3,990 crore. Energy incentives are equally robust, with a ₹1/unit power tariff subsidy for 15 years, and complete exemptions on electricity duty, transmission charges, and renewable energy cross-subsidy charges for 15 to 20 years. To support water-intensive operations, a 25% water tariff subsidy is also approved for 10 years. In summation, the total incentive outlay approved by the SIPB reaches ₹22,002 crore.
This ambitious project is set to develop over 1,000 MW of advanced data center capacity. This is expected to generate significant direct and indirect employment opportunities, firmly positioning Andhra Pradesh as a premier destination for AI and digital innovation in India.
The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has meticulously earmarked the 480 acres across strategic locations: 120 acres in Adavivaram and Mudasarlova, 200 acres in Tarluvada (Visakhapatnam District), and an additional 160 acres in Rambilli (Anakapalli District).
An additional 15 acres have been specifically reserved for a crucial landing cable station, underscoring the project’s comprehensive scope. The investment in these data centers is projected to ignite growth across various related sectors, including construction, IT services, power generation, and manufacturing, thereby creating thousands of direct and indirect jobs.
Operating under the progressive Data Centre Policy (4.0) 2024–29, the state is committed to attracting substantial global investments in AI-ready data centers, data embassies, and cutting-edge digital parks. The Raiden Infotech project stands as one of the largest private investments in Andhra Pradesh’s technology sector to date, marking a pivotal moment for the state’s economic and technological landscape.