How much is Reliance investing in the Vizag data centre, and what does it include?

Total investment is ₹1.6 lakh crore (~$17 billion). This breaks down into ₹1.08 lakh crore for the data center cluster and ₹51,300 crore for renewable energy, a 9,000 MW-peak DC solar project with battery storage. Both components were cleared by Andhra Pradesh's Investment Promotion Committee on April 25, 2026.

When will the Vizag data center be operational?

Phase 1 (500 MW at Polipalli, covering 300 acres) is targeting commercial operations by October 2028. Phase 2 (1 GW at Bhogapuram East and West, 635 acres) is expected to be completed by 2030, taking total capacity to 1.5 GW.

Why did Andhra Pradesh win this investment over other states?

Andhra Pradesh's Data Centre Policy 4.0 offers 100% state GST reimbursement on capital goods, a 10% capital subsidy on machinery, and direct power procurement rights for projects above 300 MW. The coastal location in Vizag also provides access to subsea cable networks, which is critical for low-latency global connectivity.

What is Reliance's broader AI plan beyond Vizag?

Mukesh Ambani announced a ₹10 lakh crore ($110 billion) plan to build AI computing infrastructure across India over seven years. This includes gigawatt-scale data centres, a nationwide edge computing network, and AI services integrated with Jio. The Vizag project is the first major anchor investment in that plan.

Is Reliance the only major player investing in Vizag data centers?

No. Google announced a 1 GW data center in the region with an investment of around $15 billion, the foundation was laid on April 28, 2026. Other operators including Sify, RMZ, Tillman Global Holdings, and Anant Raj Cloud have also announced projects in the area. Reliance also has a separate JV, Digital Connexion (with Brookfield Asset Management and Digital Realty), that has committed ~$11 billion in data centre capacity by 2030.

How does the renewable energy component work?

Reliance is investing ₹51,300 crore in a captive solar project with a 9,000 MW-peak DC capacity (up to 6,000 MW AC output), plus battery storage. This generates power specifically for the data center cluster, reducing grid dependence and ensuring stable supply. Reliance already has surplus green power capacity from solar projects in Gujarat and Andhra Pradesh that it can draw from.

Reliance ₹1.6 Lakh Cr Vizag Data Centre: What Investors Should Know

Reliance Share Price in Focus After ₹1.6 Lakh Crore Vizag Data Centre Plan

India's largest proposed data center cluster, 1.5 GW, 935 acres, October 2028 Phase 1: Here's what the Vizag bet means for Reliance and India's AI ambitions.

Revati Krishna

Published: 28 Apr 2026, 05:00 PM IST (6 days ago)

Last Updated: 29 Apr 2026, 10:35 PM IST (4 days ago)

4 min read

Quick Answer

Reliance Industries plans to invest ₹1.6 lakh crore ($17B) in a 1.5 GW AI-focused data center cluster in Visakhapatnam, India's largest. The project spans 935 acres, with Phase 1 (500 MW) targeting October 2028. The AP government approved the project on April 25, 2026. Reliance stock rose ~1% on April 28.

Reliance Industries is set to make one of the biggest digital infrastructure bets in India by investing around ₹1.6 lakh crore (over $17 billion) in a massive AI-focused data center cluster in Visakhapatnam, Andhra Pradesh. The proposed facility, with a planned capacity of 1.5 gigawatts, is expected to become India's largest data center cluster once completed. The stock closed up approximately 1% to ₹1,379 on April 28, 2026, as the news circulated.

The Vizag project: what's actually planned

The project was cleared by Andhra Pradesh's Investment Promotion Committee on April 25, 2026. Of the total ₹1.6 lakh crore, ₹1.08 lakh crore is earmarked for the data center cluster itself, and ₹51,300 crore for the renewable energy component, primarily a captive solar project with a 9,000 MW-peak DC capacity (up to 6,000 MW AC output) combined with battery storage.

The project will be built in phases across 935 acres near the upcoming Bhogapuram airport region. Phase 1 covers 300 acres at Polipalli village, a 500 MW facility with commercial operations targeted by October 2028. Phase 2 adds 635 acres at Bhogapuram East and West, bringing the total to 1.5 GW by 2030. The project also includes an 80-acre desalination plant and a cable landing station.

This fits into a much bigger AI ambition announced by Mukesh Ambani earlier this year, a ₹10 lakh crore ($110 billion) plan to build AI computing infrastructure across India over seven years. That broader strategy includes gigawatt-scale data centers, a nationwide edge computing network, and AI services integrated with Jio.

The clean energy model is deliberate. A significant portion of the investment goes toward captive solar power and battery storage to ensure uninterrupted operations while reducing grid dependence. Reliance has said it has surplus green power capacity from solar projects already running in Gujarat and Andhra Pradesh.

Reliance also has skin in the game through Digital Connexion, a joint venture between RIL, Brookfield Asset Management, and Digital Realty that has separately committed approximately $11 billion in data center investments by 2030.

Why data centres matter in the AI era

Data centers are the physical layer underneath every cloud app, UPI payment, video stream, AI model, and file stored online. As AI adoption grows, particularly for training and running large models, computing demand is rising faster than most existing infrastructure can handle.

The challenge is not just scale. It's power. A single large AI training run can consume as much electricity as thousands of homes. That's why the industry is moving toward integrated projects that combine compute capacity with dedicated clean power generation, exactly the model Reliance is deploying in Vizag.

Why Visakhapatnam

Vizag offers coastal access to subsea cable networks, available industrial land, and improving infrastructure. But the bigger draw is policy. Andhra Pradesh's Data Center Policy 4.0 offers:

100% state GST reimbursement on capital goods
10% capital subsidy on machinery
Direct power procurement rights for projects above 300 MW

That last incentive is significant for a 500 MW Phase 1 project — it means Reliance can bypass the distribution grid and procure power directly, which cuts costs and improves reliability.

The policy is working. Google has announced a 1 GW facility in the region with an investment of around $15 billion, and the foundation-laying ceremony was held the same week. Sify, RMZ, Tillman Global Holdings, and Anant Raj Cloud have also announced large-scale plans. Andhra Pradesh's stated target is 6 GW of total data hosting capacity across operators, which is starting to look achievable.

What this means for Reliance

Reliance's traditional businesses, oil and gas, retail, telecom, generate strong cash flows but face questions about long-term growth. Digital infrastructure changes that narrative. A 1.5 GW data center cluster, once operational, positions Reliance to sell computing capacity to enterprises, AI developers, cloud providers, and government entities at scale.

The clean energy integration also matters strategically. Reliance has been building out its renewable energy portfolio for years. Vizag is where that power generation capacity gets a high-value customer: its own data centers running around the clock.

At ₹1.08 lakh crore for the data centre and ₹51,300 crore for renewable energy, this isn't just an infrastructure bet — it's a vertically integrated play. Reliance generates the power and consumes it in the same project.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.