Adani Gets 480 Acres in AP for 1 GW AI Data Centre Project

December 04, 2025: In a significant push to strengthen India’s digital backbone, the Andhra Pradesh government has formally approved the transfer of 480 acres of land across Visakhapatnam (Vizag) and Anakapalli districts. This massive land parcel is being allotted to Adani Infra (India) Pvt Ltd, which is a key partner in a colossal 1 Gigawatt (GW) Artificial Intelligence (AI) data centre project spearheaded by the Google-linked entity, Raiden Infotech India Pvt Ltd.

Project Scope and Investment

The land allocation, approved by the state’s council of ministers on November 28, 2025, and formalized in a government order on December 2, is a crucial step for one of the country’s most ambitious technology infrastructure proposals.

• Mega-Investment: The project involves a staggering cumulative investment exceeding ₹87,500 crore. Chief Minister N. Chandrababu Naidu noted that Google’s total investment commitment has increased from an initial $10 billion to $15 billion.
• The Power of AI: Raiden Infotech India, a Google company, is setting up a 1 GW AI Data Centre cluster in the state. Data centre capacity is measured by the electricity it consumes, and a 1 GW facility, at full capacity, is expected to use power equivalent to nearly half of Mumbai’s annual consumption.
• Adani’s Role: Adani Infra (India) is the primary ‘notified partner’ of Raiden Infotech India, a list that also includes AdaniConneX India, Adani Power, Bharti Airtel, and Nxtra Data. The government has transferred the three identified land parcels—including 120 acres in Adavivaram and Mudasarlova, 200 acres in Tarluvada (Vizag), and 160 acres in Rambilli (Anakapalli)—directly to Adani Infra (India).
• Incentives Package: To facilitate the development, the state government has promised significant incentives, including subsidies and concessions on land, power, and utilities, which are expected to total around ₹22,000 crore over a phased timeline.

The Vision for Vizag

This project is poised to transform the economic and technological landscape of Andhra Pradesh, positioning Visakhapatnam as a major hub for AI, cloud services, and advanced digital infrastructure. The data centre will be built to the same stringent operational standards that power Google’s core services, such as Search, YouTube, and Workspace.

State officials anticipate that the development will generate substantial direct and indirect employment opportunities, providing a boost to various allied sectors in the region. The project also fits into India’s strategic vision to localize data storage, driven by the massive surge in data from deep digitization, 5G expansion, and widespread AI adoption.

Concerns and Challenges

Despite the immense economic promise, the large-scale nature of the project has generated significant environmental and social concerns. Civil society groups, such as the Human Rights Forum (HRF), have cautioned that data centres of this size are notoriously water and energy-hungry.

• Resource Strain: Critics argue that the project could intensify water stress in the coastal city, which is already vulnerable to climate variability. They question the feasibility of powering the facility with 100% renewable energy without heavy reliance on fossil-fuel backup, which could strain the state’s power grid.
• Environmental Impact: Concerns have also been raised regarding potential irreversible ecological damage, lack of transparency on the cumulative Environmental Impact Assessment (EIA), and the potential for displacement of local livelihoods.

The execution of this mega Adani-Google project will be closely monitored, with its ultimate success resting not just on technology and investment, but on the effective management of environmental safeguards and the assurance that its economic benefits create a sustainable and inclusive technology hub for the surrounding communities.