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Google has obtained a power distribution (discom) licence for its proposed 1 GW hyperscale data centre hub in Visakhapatnam, marking a key regulatory milestone for the USD 15 billion (approx. INR 1.25 lakh crore) investment. Approved by the Andhra Pradesh cabinet in the past week, the licence allows the company to directly procure and distribute electricity for its operations, a first for a private entity in the state. The project, spread across multiple sites in Visakhapatnam and Anakapalli districts, is positioned as India's largest single foreign direct investment. Construction is expected to commence later this month. The move is aimed at ensuring uninterrupted power supply, improving cost efficiencies, and enabling integration of renewable energy sources for large-scale data infrastructure.
Google has secured a power distribution licence for its upcoming 1 gigawatt (GW) data centre hub in Visakhapatnam in the past week, following approval from the Andhra Pradesh cabinet, enabling the company to directly procure and distribute electricity for the USD 15 billion project as it prepares to begin construction later this month. Advertisement
The licence represents a critical regulatory clearance for operationalising what is expected to be India's largest single foreign direct investment in digital infrastructure. It also marks a departure from conventional power supply arrangements, as Google becomes the first private company in Andhra Pradesh to be granted a discom licence, according to officials familiar with the development.
With this approval, the company will transition from being a large electricity consumer to directly managing its energy sourcing and distribution. This is particularly significant for hyperscale data centres, where electricity constitutes a substantial portion of operating expenditure. Industry estimates indicate that power costs can account for 40-60 per cent of total expenses, making energy management a central operational lever.
The licence is expected to provide Google with greater control over power reliability and sourcing strategies, including the ability to integrate renewable energy into its supply mix. Officials indicated that such an arrangement would reduce exposure to grid disruptions while supporting efficiency and sustainability targets for the facility.
The data centre hub is planned across three locations near Visakhapatnam Adavivaram and Tarluvada in Visakhapatnam district, and Rambilli in Anakapalli district. Land parcels for these sites have been allocated to special purpose vehicles associated with Adani Infra Limited, which is partnering with Google's subsidiary, Raiden Infotech India Private Limited, to implement the project.
The development will comprise multiple data centre parks, with land allocations including approximately 160 acres at Adavivaram and Mudasarlova, 266.6 acres at Tarluvada, and 174.8 acres at Rambilli. These campuses are expected to support large-scale computing infrastructure, including artificial intelligence workloads, as demand for cloud and data processing capacity continues to expand.
Construction activity for the project is scheduled to commence later this month, indicating a transition from planning and approvals to on-ground execution. The timing of the licence is considered significant, as uninterrupted and high-quality power supply remains essential for ensuring continuous uptime in data centre operations.
The move reflects a broader trend among global hyperscale operators to exercise greater control over critical infrastructure such as power and cooling systems. In the Indian context, where data centre demand is increasing alongside digital adoption and artificial intelligence deployment, such regulatory flexibility could influence future large-scale investments in the sector.
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