Adani Data Center in Visakhapatnam Remains Stalled
Six years after announcing plans for a Vizag data center, Adani has yet to begin significant construction. Global players like Google, Raiden, and Sifi continue to expand in the city, but Adani’s project remains on hold. Although the foundation stone was laid twice and approvals secured two years ago, only a boundary wall has been built.
“The project should have shown visible progress by now, but work seems to have stopped,” said an industry insider.
The initiative began in 2019 when the Telugu Desam government allocated land for the facility. Then-Chief Minister Chandrababu Naidu laid the foundation stone in February of that year. After the YSRCP government took office, it canceled the original agreement and reassigned 130 acres in Madhurawada Hill No. 1, citing concerns over long-term commitments and stressing the need for swift execution. Land valued at Rs 15 crore per acre was provided by APIIC at Rs 1 crore per acre.
To manage the project, Adani formed a special purpose vehicle (SPV), ‘Vizag Tech Park Limited’. “The VMRDA approved the layout quickly, and we expected construction to start immediately,” said a VMRDA official.
The plan included an integrated data center and a business park. The phased investment is estimated at Rs 14,634 crore and expected to create nearly 25,000 jobs. Of the allotted land, 82 acres were designated for a 200 MW data center, 28 acres for an IT business park, and 11 acres for a skill university.
“The facilities were intended to run entirely on renewable energy, with a submarine cable connecting to Southeast Asia,” said a source close to the project. The SPV later revised the plan, launching a 100 MW data center first.
Environmental clearance was granted in January. Since the site falls within the Kambalakonda Sensitive Zone, a 30-meter green belt is mandatory. Officials inspected the land six months ago, but currently, only a fence has been built.
An APIIC official said, “The agreement required operations to start within three years. Two years have passed. Notices will be issued if work does not begin, and renewing the agreement will incur a penalty.”