After Google, Reliance Picks AP For Massive AI Data Centre Hub

Andhra Pradesh is emerging as a data centre hub attracting investments from several companies in the Fortune 500 list. The coalition government’s plans to elevate Visakhapatnam as the AI data centre hub is likely to be fulfilled in the next four years.

After Google, Reliance Industries Limited is also entering the state to set up a Giga-scale AI Data Centre at a cost of Rs 1,08,010 crore. The data centre would be established in two phases at Polapalli in Vizianagaram.

The government also allocated land at Bhogapuram East, West to RIL. The government has taken a decision to handover the lands to Reliance at the earliest to enable launching the works. Reliance would also set up a huge data centre at Jamnagar in Gujarat.

In the first phase, buildings, plant and machinery would be set up investing around Rs 45,610 crore. By the end of the fourth trimester in 2028, a 500-MW IT data centre would begin operating, according to the plans of RIL.

In the second phase, a 1000-MW data centre (with 500-MW capacity at two places) would be completed by 2030, according to the proposal submitted by RIL.

Of the total expense, over 71 per cent, amounting to Rs 76,688 crore would be spent on the plant and machinery alone.

The government had allocated 853.97 acres at three places in Vizianagaram district for the Reliance Data Centre. Basing on the market prices, the compensation of the land is estimated at Rs 1,289.95 crore.

Data centres would need huge amount of water. It is estimated that over 88,400 kilo litres of water would be necessary per day. The water supply would be monitored by the water resources, municipal administration and APIIC wings. The RIL would pay the cost for the water required by the data centre.

Over 2,250 MW power is also required for the data centre and other subsidiary units which would be supplied by the AP Transco.