Andhra Pradesh approves green AI data centre
Analysis based on 6 articles · First reported Aug 22, 2026 · Last updated Aug 24, 2026
The approval signals a major investment in India's digital infrastructure, potentially boosting the data centre and AI sectors and attracting further investments to India — Andhra Pradesh. It may positively impact the state's economy and employment, while the incentives could reduce project costs for Capital Factory.
The India — Andhra Pradesh government approved a 512 MW green integrated AI data centre project by Capital Factory Pvt Ltd in India — Visakhapatnam district, with an investment exceeding ₹31,387 crore. The facility will be located at Amanam village in Bheemunipatnam mandal and is expected to create up to 1,000 jobs. The project, classified as a Mega Project under the India — Andhra Pradesh Data Centre Policy 4.0, must be completed within two years and four months. The state will provide non-fiscal support including power infrastructure via India — Andhra Pradesh Transmission Corporation, water supply, and road connectivity through India — Andhra Pradesh Industrial Infrastructure Corporation. Fiscal incentives include stamp duty exemption capped at ₹16 crore, 10% capital subsidy capped at ₹300 crore, 100% net SGST reimbursement capped at ₹490 crore, transmission and wheeling charge exemptions capped at ₹1,250 crore, cross-subsidy surcharge exemptions capped at ₹3,000 crore, electricity duty exemption capped at ₹90 crore, and a 30% discount on OPGW fibre access charges. This approval supports India — Andhra Pradesh's goal of 6 GW data centre capacity and positions India — Visakhapatnam as an emerging AI infrastructure hub.
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