Raiden Infotech India Pvt Ltd is set to receive Rs 22,000 crores as incentives from the Andhra Pradesh government for setting up data centres in the state. 

The firm, a subsidiary of Google, has invested over Rs 87,500 crores for the project. 

According to a recent Government Order, Raiden Infotech would build data centres with a capacity of over 1000 MW (megawatts) in Visakhapatnam and Anakapalli in a phased manner, with a total expenditure of Rs 87,520 crores.

Google announced on Tuesday, October 14, that it will invest USD 15 billion in establishing an artificial intelligence (AI) infrastructure hub in AP, including a gigawatt-scale data center, in partnership with the Adani Group, PTI reports.

The AP government has signed a major agreement with Google to build a USD 15 billion gigawatt-scale AI data center in Visakhapatnam.

"SIPB ( State Investment Promotion Board) has decided to extend the above-listed incentives with an overall cap of Rs 22,002 crore. The above SIPB recommendations were placed before the council of ministers in its meeting dated 10.10.2025 and the same was approved," the GO said.

As part of the incentive package, the state government provided a discount of 25 per cent on the land: 160 acres in Rambilli, 120 acres at Adavivaram and Mudasarlova, and 200 acres at Tarluvada.

The land would be made accessible to Raiden Infotech India's notified partners following approval from the competent authority.

In addition, the company is given an allotment of up to 15 acres for a landing cable station after receiving confirmation from the project proponent.

The government would also provide a 100 per cent exemption from stamp duty and registration expenses, as well as a 10 per cent capital subsidy on plant and machinery for a 10-year term.

There will be 100 per cent reimbursement of net SGST accrued to the state on construction capped to Rs 2,245 crore. This incentive would be extended for ten years, or until the project reached its maximum capacity, whichever comes first.

The power would be delivered at a discount of Rs 1 per unit for a period of 15 years. The entire incentive component is limited to Rs 4,800 crores. The incentive shall be offered for the first ten years of business.

Once expected investment and capacity benchmarks are met, the contract will be extended for an additional 5 years.