Google’s $10-Billion Data Centre in Visakhapatnam Cleared for Tax, Set to Boost Jobs and GDP
Minister for IT and HRD Nara Lokesh announced that the Centre and Andhra Pradesh government have resolved all taxation issues for Google’s $10-billion data centre in Visakhapatnam. He confirmed that there will be no retrospective taxation. “Since data will be processed here, we clarified the taxation structure with the Centre,” he told The Coastal Times at the foundation ceremony of the city’s first data centre and cable landing station.
The facility is being developed by Raiden Info Tech, a subsidiary of Google. It is expected to generate 1.88 lakh jobs. Between 2028 and 2032, it could contribute Rs 10,518 crore annually to the State’s GDP. All data generated will remain in India, supporting the country’s data sovereignty framework.
The State allocated land at a mutually agreed market rate. Lokesh said Andhra Pradesh has the right talent, ecosystem, and agility to attract such investments.
Addressing energy needs, he added that the State’s renewable energy capacity—including wind, solar, and thermal power—will support large-scale data centre operations. A separate power grid will serve data centres. Google will cover the cost, partly subsidised by the State.
Citing global examples, Lokesh said countries like Ireland and Singapore have restricted new data centre projects due to energy limits. He argued that India should remain open to such investments. Earlier this year, Tata Power Renewable Energy signed a Rs 49,000-crore agreement for renewable energy projects in Andhra Pradesh.
The State has also attracted other mega projects, including Sify Technologies’ $1.9-billion data centre, ArcelorMittal’s $16.6-billion steel plant, and BPCL’s $10.7-billion refinery. More investments are expected in technology, agriculture, manufacturing, and tourism.
Highlighting governance reforms, Lokesh said the “Speed of Doing Business” approach and Policy 4.0 frameworks have streamlined clearances. This coordination on taxation, clearances, and reforms makes Andhra Pradesh one of India’s most attractive destinations for mega investments.