AP Government Okays Lease of Land in Vizag for Adani Hyperscale Data Centre
The government order issued in this regard on August 20 followed the recommendations of the State Investment Promotion Board (SIPB) at its meeting on August 12.
Visakhapatnam:AP government has approved significant modifications in the land sale agreements reached with two Adani Group special purpose vehicles (SPVs) for developing data centre projects at Tarluvada in Visakhapatnam district and Rambilli in Anakapalli district.
The government order issued in this regard on August 20 followed the recommendations of the State Investment Promotion Board (SIPB) at its meeting on August 12. Earlier, allotments included 160 acres at Adavivaram and Mudasarlova for Vizag Hyperscale Data Centre Park, 266.6 acres at Tarluvada for Vizag Mega Data Centre Park, and 174.8 acres at Rambilli for Vizag Rambilli Data Centre Park. The Rambilli allotment had later been reduced to 159.80 acres after field verification.
The latest decision of the state government has been prompted by a proposal from Adani Infra (India) Ltd, identified as the primary notified partner for Raiden Infotech, for establishment of the Google data centre. Among the key changes is the inclusion of a clause permitting external commercial borrowings (ECBs) and financing through institutions approved by the centre. The government has also allowed provisions for execution and registration of sale deeds in line with directions issued from time to time.
The modified agreements introduce a 30‑day cure period, enabling project proponents to rectify any breach or default before cancellation proceedings are initiated.
Provisions relating to land title, ownership, and usability will be strengthened through covenants, representations, and warranties. Importantly, the liability of project proponents towards enhanced compensation claims has been capped at 10 per cent of the land cost paid at the time of execution of the sale agreement.
In a parallel decision, the government approved leasing of 5.84 acres of GVMC land at Adavivaram and Mudasarlova to Vizag Hyperscale Data Centre Park. Lease rentals will be fixed at three per cent of the SRO value, with a five per cent escalation every five years. Terms will be aligned with the existing lease agreement between APIIC and the SPV for the larger extent of land at the site.
Municipal Administration and Urban Development department has been directed to amend provisions of an earlier government order issued on May 1, 2026, as a special case, and instruct GVMC to take necessary action.
