By In a landmark decision, Raiden Infotech India Ltd, a subsidiary of Google, has secured approval to invest ₹87,520 crore in building a mega data centre in Visakhapatnam, Andhra Pradesh. The project was green-lit during the 11th meeting of the State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu. The New Indian Express+2The Economic Times+2
This investment ranks among the largest foreign direct investments (FDI) in India’s tech infrastructure domain, and promises to transform Visakhapatnam into a new hub for data, cloud and AI operations.
Project Overview
- The data centre will be spread across three campuses located in Tarluvada, Adavivaram, and Rambilli in Visakhapatnam district. The New Indian Express+2The Hans India+2
- It is being proposed as a 1 gigawatt (GW) class AI / hyperscale facility. Data Center Dynamics
- The plan calls for major land parcels: approximately 200 acres in Tarluvada, 120 acres in Adavivaram, and 160 acres in the Rambilli–Achyutapuram cluster. Data Center Dynamics+2The Tech Portal+2
- Once operational, the facility is expected to support Google’s global cloud and AI infrastructure, catering to demand from India and its neighbouring regions. The Tech Portal+2Data Center Dynamics+2
- The timeline proposed is: construction beginning in March 2026, and operations commencing by July 2028 (for the first phases). Data Center Dynamics
Strategic Significance
India’s Largest Data Centre FDI
This project is among the largest FDI commitments in India’s data infrastructure sector to date. The Economic Times+2The Hans India+2 The approval by SIPB signals strong state-level support for technology investments. Deccan Chronicle+2The New Indian Express+2
Building a “Data Valley”
The Andhra Pradesh government and IT Minister Nara Lokesh envision the region becoming India’s “Data Valley”—a technology corridor that anchors cloud, AI, computation, and global connectivity. The Economic Times+3The Hans India+3The New Indian Express+3 The project is expected to spur development of ancillary industries, high-tech supply chains, and digital ecosystems. The Hans India+1
Economic and Employment Impact
- The SIPB noted that among all projects approved in that meeting, the Raiden investment is expected to contribute significantly to the ~67,218 new direct jobs projected. The Hans India+2The New Indian Express+2
- Beyond direct employment, ancillary services, maintenance, power, logistics, and ancillary tech services are expected to generate further indirect jobs.
- The state government anticipates that the project will accelerate the region’s economic growth, raise the technology quotient, and attract other high value investments. The New Indian Express+1
Complementary Infrastructure
To support such a mammoth facility, allied infrastructure must be upgraded:
- Power supply, grid stability, and renewable energy sources
- Submarine cable landing stations and high capacity fibre networks
- Dedicated housing, urban amenities, and townships for employees
- Transport connectivity, logistics, and support services Data Center Dynamics+3The Hans India+3Deccan Chronicle+3
Challenges & Risks
Land Acquisition & Legal Hurdles
Reports indicate that land acquisition, especially in Tarluvada, has already encountered legal obstacles. Some litigants have filed disputes in court, claiming rights to land or challenging compensation. The Times of India+1 The rate offered is reportedly around ₹50 lakh per acre, which is 2.5x the revised government rate. The Times of India
Power & Resource Constraints
A 1 GW facility will demand immense, consistent power. The government and utility agencies must ensure power availability, grid stability, and potentially large-scale renewable sources. Data Center Dynamics+2The Tech Portal+2 Water, cooling, and environmental constraints are additional stress points, given that data centres require adequate water for cooling.
Execution & Timeline Risks
Given the scale, delays in approvals, resource mobilization, or infrastructure could stall the project timeline. Any misalignment with global supply chains, regulations, or policy changes may also introduce risks.
Government & Policy Role
- The Andhra Pradesh government has fast-tracked approvals, cleared multiple large investments, and set up special oversight for mega projects. The Hans India+2Deccan Chronicle+2
- The broader industrial strategy divides the state into multiple economic zones (Visakhapatnam region, Amaravati region, Rayalaseema) to balance development. Deccan Chronicle+1
- Officials are also emphasizing value-addition, rail and road connectivity, seamless power linkages, urban planning, and aligning industrial clusters with the data centre investment. The Hans India+1
Outlook & Implications
If fully realized, the Raiden Infotech data centre could become one of India’s flagship digital infrastructure projects—strongly raising Andhra Pradesh’s profile in AI, cloud and data industries. It may attract complementary investments, foster innovation, and shift part of India’s digital economy footprint toward the eastern coast.
However, successful execution will require deft handling of land, regulatory, infrastructure, and environmental challenges. If managed well, its impact could resonate far beyond Visakhapatnam—making it a pivotal node in India’s digital transformation.
