The government of Andhra Pradesh has sanctioned an incentive package worth Rs 220 billion and allocated 480 acres of land to Raiden Infotech India Private Limited for setting up artificial intelligence (AI)-driven data centres (DC) valued at Rs 875 billion across Visakhapatnam and Anakapalli districts.
The approval was issued through government order (G.O.) number 40 of the Information Technology, Electronics and Communication (IT, E&C) Department, following recommendations from both the State Investment Promotion Board (SIPB) and the Council of Ministers.
As part of the fiscal incentive framework, the state announced a 25 per cent rebate on land cost, 10 per cent capital subsidy on plant and machinery for 10 years (capped at Rs 21.29 billion), 100 per cent exemption on stamp duty and registration charges, and state goods and services tax (SGST) reimbursements on construction and leasing for 10 years (Rs 39.9 billion). Additional benefits include a Re 1 per-unit power-tariff subsidy for 15 years, complete exemptions from electricity duty, transmission charges, and renewable-energy cross-subsidy charges for 15 to 20 years, along with a 25 per cent water-tariff subsidy for 10 years. Collectively, these incentives bring the total outlay to Rs 220 billion.
The project will develop over 1,000 megawatts (MW) of next-generation DC capacity, driving large-scale direct and indirect employment while strengthening Andhra Pradesh’s position as a prime hub for AI and digital innovation.
The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has earmarked 480 acres across multiple sites: 120 acres in Adavivaram and Mudasarlova, 200 acres in Tarluvada (Visakhapatnam district), and 160 acres in Rambilli (Anakapalli district).
Moreover, 15 acres of additional land have been reserved for a landing-cable station. The data-centre initiative is expected to catalyse growth in allied sectors such as construction, IT services, power, and manufacturing, creating thousands of jobs across the value chain.
Under the DC Policy (4.0) 2024–29, Andhra Pradesh aims to attract significant global investments in AI-ready DCs, data embassies, and digital parks. The Raiden Infotech project stands among the largest private investments in the state’s technology landscape to date.
