Reliance Industries Unveils $16.8 Billion Plan for Mega AI Data Centre Hub

• RIL plans a $16.8 billion investment for a 1.5-GW AI-focused data centre cluster in Visakhapatnam.

• Project includes captive solar and battery storage for sustainable operations.

• Expected to surpass Google’s 1-GW, $15 billion regional project.

• Development spans 935 acres in phased expansion through 2030.

• Strengthens Andhra Pradesh’s 6-GW hosting ambition under Data Centre Policy 4.0.

  
  

Reliance Industries Ltd. (RIL) is preparing to make one of the largest digital infrastructure investments in India with a proposed outlay of approximately $16.8 billion to build a massive 1.5-gigawatt data centre cluster in Visakhapatnam, Andhra Pradesh. The project will also include a dedicated solar power and battery storage system to support its operations, according to sources familiar with the development.

Once completed, the facility is expected to become the largest data centre cluster in India, surpassing Google’s 1-GW project currently under development in the same region with a planned investment of $15 billion.

Approval and Land Allocation

The proposal has already received approval from Andhra Pradesh’s Investment Promotion Committee during a meeting held last Saturday, sources confirmed.

RIL intends to develop what it describes as a giga-scale artificial intelligence-focused data centre campus in three stages. The company has requested around 935 acres for the main cluster — roughly 300 acres for the first phase and 635 acres for the second. Additionally, it has sought 1 acre for a cable landing station and another 80 acres for a desalination facility.

Queries sent to Reliance Industries did not receive a response at the time of publication.

Phased Development Timeline

The initial phase involves constructing a 500-megawatt data centre in Polipalli village. Commercial operations are expected to begin by October 2028.

In the second phase, the company plans to add another 1 GW of capacity at Bhogapuram East and West by 2030. The full data centre complex will be located close to the upcoming Bhogapuram international airport near Visakhapatnam.

Visakhapatnam Emerging as a Data Hub

Visakhapatnam is rapidly establishing itself as a major digital infrastructure destination. Google recently announced a $15 billion investment to build a 1-GW data centre cluster in the region, with its formal launch scheduled this week.

Several other companies have also committed significant investments. Sify Technologies is developing a 500-MW facility. Digital Connexion plans a 1-GW campus, while Anant Raj Cloud has proposed approximately 300 MW of capacity. Additional agreements have been signed with RMZ for a 1-GW project and Tillman Global Holdings for a 300-MW development.

The concentration of projects underscores the port city’s growing prominence as a technology and cloud infrastructure hub.

State Policy Driving Growth

In September 2025, Andhra Pradesh IT Minister Nara Lokesh stated that the state aims to achieve a hosting capacity of 6 GW. With memorandums of understanding already signed for projects totaling approximately 5.6 GW, the addition of RIL’s proposed 1.5-GW cluster would significantly advance that goal.

The surge in investments has been supported by Andhra Pradesh’s Data Centre Policy 4.0, which offers a range of incentives. These include full reimbursement of state GST on capital equipment, a 10% capital subsidy on machinery, and deemed distribution licenses that allow large data centres—those with a minimum capacity of 300 MW—to procure power directly.

Renewable Energy Integration

Of the total planned investment, RIL intends to allocate about $11.4 billion toward building the data centre cluster itself, while approximately $5.4 billion will be directed toward the associated renewable energy infrastructure.

The State Investment Promotion Committee has also cleared a large-scale solar project tied to the development. The proposed installation will feature panels with a total direct current capacity of 9,000 MW-peak, capable of producing up to 6,600 MW of alternating current at peak generation.

A Strategic Bet on AI Infrastructure

The scale of the proposed project highlights Reliance’s broader ambition to expand into AI-driven digital infrastructure. By integrating renewable power generation with high-capacity computing facilities, the company is positioning itself at the intersection of clean energy and next-generation data processing.

If executed as planned, the Visakhapatnam cluster could transform the region into one of Asia’s most significant data centre corridors, reinforcing Andhra Pradesh’s push to become a national leader in digital and cloud infrastructure.