DataCentre – Andhra Pradesh Clears Major Tech Investments to Expand Digital Infrastructure
DataCentre – The Andhra Pradesh government has approved the expansion of a major data centre project proposed by Sify Infinit Spaces Limited in Visakhapatnam by sanctioning an additional 25 acres of land for the second phase of development. Along with this decision, the State has also cleared three more technology initiatives, including two new IT campuses in Visakhapatnam and a large-scale data centre project in Anakapalle district, reinforcing its efforts to attract investments in the digital sector.
Sify Project Moves Ahead with Additional Land
Among the approved projects, Sify Infinit Spaces Limited’s planned 500 MW data centre remains the largest. The company had previously secured 3.6 acres at Madhurawada and another 25 acres at Paradesipalem under an order issued in August 2025. The proposed investment for the entire project stands at Rs 15,266 crore and is expected to create around 600 employment opportunities.
To support the next phase of construction and achieve its targeted capacity, the company requested another 25 acres of adjoining land. The government accepted the proposal while retaining the previously fixed allotment rate of Rs 50 lakh per acre.
Land Transfer Linked to Legal and Project Conditions
Officials have decided that the additional land will be handed over in stages. Initially, 12.40 acres will be transferred, subject to the outcome of proceedings before the Survey and Settlements Department. The remaining 12.60 acres will be allotted only after pending legal disputes concerning the land are fully resolved.
The government has also made it clear that Sify must begin implementing the first phase of the project before receiving the remaining land. The balance area will be transferred only after the Andhra Pradesh Industrial Infrastructure Corporation secures possession of the site and verifies satisfactory progress in the initial phase.
New IT Campuses Approved in Visakhapatnam
The government has also cleared the proposal of Infinx Technology Solutions Private Limited to establish an IT and ITeS campus at Kapuluppada IT Park in Visakhapatnam. The company has been allotted 5.08 acres of land for a project involving an investment of Rs 170 crore.
Planned in two phases, the campus is expected to generate nearly 4,000 jobs. The land has been allotted at Rs 2 crore per acre under the AP IT & GCC Policy (4.0) 2024-29.
Another approval has been granted to Eclat Health Solutions (India) Private Limited, which will establish an IT and ITeS campus on two acres of land at Rushikonda in Madhurawada. The project involves an estimated investment of Rs 50 crore and carries a commitment to provide employment for about 1,000 people.
Conditions Attached to Eclat Health Project
The land allocated to Eclat was previously assigned to iSpace Software Solutions Limited. However, that allotment was cancelled after the company failed to pay the required land cost within the prescribed timeline under APIIC regulations.
As part of the fresh approval, Eclat has been directed to begin commercial operations within 12 months of signing the sale agreement. The company must also meet its promised employment target during the following 12 months.
CtrlS to Build 100 MW Data Centre in Anakapalle
In another important decision, the State government approved the allotment of 49.93 acres at the APIIC Industrial Park in Rambilli, located in Anakapalle district, to CtrlS Datacenters Limited. The company plans to establish a 100 MW data centre with a proposed investment of Rs 2,788.3 crore.
To support the project, the government has also sanctioned a customised package of incentives. These include capital subsidy, reimbursement of construction-related State GST, concessional electricity tariffs, exemption from electricity duty, subsidy on water charges, and waiver of Right of Way fees. The incentives are intended to encourage large-scale investment while strengthening Andhra Pradesh’s position as an emerging destination for digital infrastructure and technology-driven industries.