Andhra Pradesh Grants Discom Licence to Google for On-Site Power Distribution in Data Centre

Andhra Pradesh Clears Licence for Google's Data Centre Project

Andhra Pradesh has cleared a power distribution licence for Google's upcoming data centre project in Visakhapatnam, marking a first-of-its-kind policy move that could reshape how large-scale data centres source and distribute electricity in India. The approval has been granted under the state's newly introduced policy framework for strategic data centre projects.

The licence is a significant development in the state's efforts to position itself as a major digital infrastructure destination. Andhra Pradesh has created a policy mechanism to provide Deemed Distribution Licences (DDL) to strategic data centres, recognising the specialised nature of their power procurement, distribution, and infrastructure requirements. The policy framework allows data centre projects developed by a single investor with a minimum connected load of 300 MW or above within the state to be eligible for a DDL.

Under the policy, data centre operators will be allowed to procure power from multiple legal sources, including renewable energy producers, bilateral power purchase agreements, open access routes, captive generation plants, and power exchanges. The policy also gives licensed data centre operators flexibility in sourcing electricity, ensuring that they have access to uninterrupted and scalable electricity supply.

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Andhra Pradesh is emerging as a major player in the digital infrastructure sector, with a focus on attracting large-scale investments and creating employment opportunities. Last month, the foundation stone was laid for Google Cloud's India AI Hub in Anakapalli, a project involving an estimated USD 15 billion investment. The state's new policy is designed to address the specialised operational requirements of data centres, positioning Andhra Pradesh as a major digital infrastructure destination.

Note: The investment amount for Reliance Industries is reported in Indian rupees (Rs 1.6 lakh crore) and has not been converted to USD.