Reliance Industries Commits Over ₹1 Lakh Crore for AI Data Centre in Visakhapatnam, Andhra Pradesh

Reliance Industries Ltd (RIL) has unveiled plans to establish a massive 1 gigawatt artificial intelligence data centre in Visakhapatnam, Andhra Pradesh, marking a transformative investment exceeding ₹1 lakh crore in the state's emerging technology ecosystem. The announcement positions Reliance as a leading investor in Andhra Pradesh's ambitious digital infrastructure roadmap.

The facility, which will be RIL's second major data centre project after its Jamnagar complex in Gujarat, represents a strategic expansion into high-performance computing infrastructure designed to support India's rapidly growing artificial intelligence and cloud computing needs. The proposed data centre will feature cutting-edge graphics processing units, tensor processing units, and specialized AI processors, establishing it as a critical node in India's digital backbone.

Green Energy Powers Digital Ambition

In alignment with India's sustainability commitments, the data centre will be entirely powered by a 6 gigawatt solar power project that Reliance will develop concurrently. While RIL has not disclosed the exact investment figure, industry estimates suggest that constructing 1 GW of data centre capacity typically requires between $12 billion and $14 billion, translating to an investment comfortably exceeding ₹1 lakh crore. This renewable energy-powered infrastructure demonstrates Reliance's commitment to sustainable technology development.

Andhra Pradesh's Data Centre Hub Takes Shape

The Reliance announcement follows Google's recent commitment of $15 billion to establish a 1 GW data centre cluster in Visakhapatnam over five years, signaling the coastal city's emergence as a major technology infrastructure hub. Andhra Pradesh's IT and Electronics Minister Nara Lokesh has articulated the state's ambition to develop 6 GW of data centre capacity, and with current commitments including Google's 1 GW, Sify's 500 MW, and now Reliance's 1 GW, the state has already secured nearly half of its target capacity.

This concentration of data centre infrastructure in Visakhapatnam mirrors similar developments in other Indian technology hubs, where global tech companies are establishing high-performance computing facilities. The strategic location offers advantages including coastal connectivity, power infrastructure, and proximity to emerging technology corridors.

CII Partnership Summit Catalyzes Investment Wave

The Memorandum of Understanding was formalized during the CII Partnership Summit on Friday, with PMS Prasad, Executive Director at Reliance Industries, and Chief Minister N Chandrababu Naidu signing the agreement. The two-day summit has become a platform for the state government to showcase investment opportunities and secure corporate commitments across multiple sectors.

Beyond Reliance's data centre commitment, the summit has witnessed several significant investment announcements including Brookfield's ₹1.08 lakh crore investment, ReNew Power's ₹82,000 crore commitment, SAEL Industries' ₹22,000 crore pledge, and Hero Future Energies' ₹15,000 crore investment. According to Chief Minister Naidu, the state expects to finalize over 400 MoUs across various sectors during the summit.

Food Processing Expansion in Kurnool

Complementing its digital infrastructure investment, Reliance has also committed to establishing a greenfield integrated food park spanning 170 acres in Kurnool. The facility will manufacture a diverse range of consumer products including packaged beverages, drinking water, chocolates, snacks, and flour products. This project, first reported in September, aims to strengthen the state's agri-processing capabilities and create manufacturing employment opportunities in the region.

Chief Minister's Implementation Pledge

Addressing longstanding concerns about MoUs failing to translate into actual projects, Chief Minister Chandrababu Naidu emphasized his government's track record and commitment to implementation. He stated that these agreements represent genuine investments that will materialize within three and a half to four years, distinguishing them from paper commitments.

Naidu highlighted that over the past 16 months, his cabinet has cleared ₹9 lakh crore in investments, and the current summit is expected to generate another ₹9-10 lakh crore in commitments. He projected that these investments collectively have the potential to generate 20 lakh employment opportunities across the state, positioning Andhra Pradesh as a significant destination for infrastructure and real estate development.

The convergence of digital infrastructure investments in Andhra Pradesh reflects broader trends in India's technology sector, where data centres are increasingly viewed as critical infrastructure supporting everything from artificial intelligence development to cloud computing services. The state's success in attracting major players like Reliance and Google positions it competitively within India's evolving digital economy landscape.

Disclaimer: This article is based on information from public sources and industry reports. Readers are advised to verify details independently and consult with relevant authorities before making any investment or business decisions. The information provided is for general informational purposes only and should not be construed as professional advice.