Andhra Pradesh Offers Rs 22,000 Crore Incentives To Google's Raiden Infotech For Building Data Centres

Amaravati: Google subsidiary Raiden Infotech India Pvt Ltd will receive Rs 22,000 crore as incentives from the Andhra Pradesh government over a period of time for setting up data centres in the state with a cumulative investment of Rs 87,520 crore. Raiden will establish more than 1000MW data centres in a phased manner in Visakhapatnam and Anakapalli districts.

The Andhra Pradesh government just signed a mega deal with Google to set up a $15 billion artificial intelligence (AI) infrastructure hub in Visakhapatnam, which also includes a gigawatt-scale data centre. This is Google's biggest-ever investment commitment in India, which is expected to create thousands of direct and indirect jobs in addition to driving innovation. The state government says that the investment will not only attract global players but also position Andhra Pradesh as a digital powerhouse in the national and international landscape.

According to the government order, the State Investment Promotion Board (SIPB) decided to extend the incentives to Raiden Infotech India with an overall cap of Rs 22,000 crore, following their approval by the Council of Ministers in a meeting on October 10, 2025. As part of the package:

• The state government offered a 25 per cent discount on the land- 160 acres at Rambilli, 120 acres at Adavivaram and Mudasarlova, and 200 Acres at Tarluvada
• The land will be made available to the notified partners of Raiden Infotech India after approval from the competent authority.
• An allotment of up to 15 acres is made available to the investor for a landing cable station after confirmation from the project proponent
• The government will also give a 100 per cent exemption of stamp duty and registration charges, besides a 10 per cent capital subsidy on plant and machinery for a period of 10 years
• There will be 100 per cent reimbursement of net SGST accrued to the state on construction, capped at Rs 2,245 crore.
• The incentive would be extended for a period of 10 years or until the project reaches its maximum capacity, whichever is earlier.
• Power will be supplied at a Rs 1/unit discount for 15 years, with a total incentive cap of Rs 4,800 crore. The incentive applies for the first 10 years and may extend another 5 years upon meeting investment and capacity milestones.

Notably, data centre capacity is typically measured by the power it consumes. The planned 1000 MW (1GW) data centre in Visakhapatnam is expected to use electricity equivalent to nearly 50 per cent of Mumbai's annual consumption.

(With inputs from agency)