Cabinet Reviews Google’s Vizag Data Centre Project

The State Cabinet reviewed progress on Google’s proposed one-gigawatt data centre in Visakhapatnam. Ministers focused on land allocation, incentives, and the Adani Group’s role as project partner.

Officials said the Cabinet examined Google’s recent communication. In it, the company stated that Adani would oversee construction and manage operations. The letter also advised routing future coordination and commercial discussions through Adani.

Ministers debated proposals to shift certain responsibilities. These included operational oversight and land ownership rights tied to the project. The Cabinet decided to scrutinise Adani’s additional conditions before taking a final call.

Google has signed an agreement with the State government to set up the facility in Visakhapatnam. The project carries a planned investment of Rs 1.36 lakh crore. The government has described it as a flagship initiative that could strengthen digital infrastructure and attract technology investments to the port city.

Separately, Adani has asked the government to transfer the incentives earlier approved for Google’s data centre. The Cabinet considered the request. It resolved to allot an additional 170 acres, adding to the 480 acres already allocated. Ministers are expected to decide on Adani’s other proposals soon.

Industry experts said the project could deliver broader economic gains. “Hyperscale data centres usually drive investment in power, connectivity, and support services,” said a technology sector analyst. “Clear policy decisions on incentives and land structures will help sustain investor confidence.”

Meanwhile, IBM has signalled plans to resume operations in Visakhapatnam. The company is exploring land options and has sought about 20 acres. Experts noted that IBM’s return could further strengthen the region’s IT ecosystem.