In a significant development that underscores India’s accelerating digital infrastructure buildout, Reliance Industries Limited is reportedly planning a ₹1.6 lakh crore (over $17 billion) investment to establish a 1.5-gigawatt data centre cluster in Visakhapatnam. According to a report by The Economic Times, the project will be supported by a captive solar power facility and battery storage system, positioning it as one of the largest integrated data infrastructure initiatives in the country.

The proposed project, which is yet to be officially announced by the company, has reportedly received approval from Andhra Pradesh’s Investment Promotion Committee. The scale of the planned capacity suggests a strategic shift by Reliance towards hyperscale computing infrastructure, particularly aligned with the growing demand for artificial intelligence workloads and cloud services.

India’s data centre capacity has been expanding rapidly, driven by rising internet penetration, data localisation requirements, and increasing enterprise digitisation. Cities such as Mumbai, Chennai, and Hyderabad have traditionally led this growth, but Visakhapatnam is now emerging as a new hub due to its coastal advantages, connectivity, and access to power infrastructure.

Reliance’s move comes amid intensifying global and domestic investments in data infrastructure. Notably, Google has already committed around $15 billion for a 1-gigawatt data centre project in the same region, signalling strong global confidence in the location.

The proposed Reliance facility is expected to be developed in three phases. The first phase involves a 500-megawatt data centre at Polipalli village, with commercial operations targeted by October 2028. The second phase is expected to add 1 gigawatt of capacity at Bhogapuram by 2030, bringing the total cluster capacity to 1.5 gigawatts.

The company has reportedly sought 935 acres of land for the project, including additional allocations for a cable landing station and a desalination plant critical infrastructure components for large-scale data centre operations. The location near Bhogapuram’s upcoming airport further enhances logistical and connectivity advantages.

This development is not occurring in isolation. Several other players are also setting up data centre capacity in the region, including Sify Technologies, Digital Connexion, Anant Raj Cloud, RMZ Corp, and Tillman Global Holdings. This clustering effect indicates the emergence of a large-scale digital infrastructure ecosystem in Visakhapatnam.

Reliance’s entry into hyperscale data centres marks a critical evolution in its digital strategy. While the company has already built strong capabilities through telecom and digital services, this move signals a deeper push into infrastructure that supports artificial intelligence, cloud computing, and enterprise digital transformation.

The integration of renewable energy and battery storage also reflects a forward-looking approach, as energy efficiency and sustainability become central to data centre economics globally. Large-scale AI data centres are energy-intensive, and securing captive green power can offer both cost advantages and ESG alignment.

For India, the investment reinforces the country’s position as a fast-growing data infrastructure market. It could accelerate the development of eastern coastal regions as alternative data centre hubs, reducing concentration risks in existing markets like Mumbai.

From a market perspective, the announcementonce formally confirmed—could have implications across multiple sectors. Telecom infrastructure, industrial construction, power equipment, and renewable energy companies may see increased demand tailwinds. Additionally, real estate developers focused on data centre parks could benefit from the clustering effect.

However, the scale of capital expenditure also raises questions around execution timelines, return on investment, and demand visibility in a rapidly evolving AI ecosystem.