Andhra Pradesh grants discom licence to Google for Vizag data centre hub

The Andhra Pradesh cabinet has approved a power distribution licence for Google’s $15-billion data centre hub in Visakhapatnam, making it the first private company in the state to receive such approval.

Google has secured the distribution company (discom) licence ahead of the project’s scheduled groundbreaking on April 28, 2026. The licence allows the company to procure and distribute electricity directly for its 1 GW data centre campus, bypassing the conventional utility supply chain.

The approval is significant for power sourcing strategy. Electricity accounts for 40–60% of data centre operating costs, and direct procurement enables optimisation of the energy mix, including higher renewable integration, while ensuring continuous supply. According to a senior state government official, the structure also reduces exposure to grid disruptions and improves control over efficiency and sustainability targets.

The project, described as the largest single foreign direct investment in India, will be developed across three campuses near Visakhapatnam: Adavivaram and Tarluvada in Visakhapatnam district, and Rambilli in Anakapalli district. The combined project area spans 601 acres. Google’s Indian subsidiary, Raiden Infotech India Private Limited, is executing the development in partnership with Adani Infra Limited through three special purpose vehicles.

Construction is expected to begin later in April 2026, with commissioning targeted by July 2028.

The approval indicates a broader shift among hyperscale operators toward integrating power infrastructure with data centre operations. With demand rising due to artificial intelligence and cloud workloads, the Visakhapatnam model may inform similar projects seeking regulatory flexibility in power procurement and distribution.