On 22 August 2026 the Andhra Pradesh government approved, under G.O. Ms. No. 59, a 512 MW green integrated AI data centre proposed by AM AI Factory (Vizag) Private Limited at Amanam village in Bheemunipatnam mandal, Visakhapatnam district, against a cumulative investment of ₹31,387 crore and an employment commitment of 1,000 jobs. Divide one by the other and it is ₹61.3 crore a megawatt — inside the band that built capacity in this registry actually cost, which makes this the cleanest large approval in the country. The order also carries a fixed establishment period of two years and four months and a published incentive package. Both are rare, and both make this record testable.
1At a glance
2₹61.3 crore a megawatt — why this one holds
Most large Indian data centre announcements fail their first arithmetic test. This one passes it, and that is worth spelling out because it makes the record usable.
| Test | Result | Reading |
|---|---|---|
| ₹31,387 crore ÷ 512 MW | ₹61.3 crore | inside the ₹52 to ₹70 crore band |
| Capacity at ₹52 crore a megawatt | 604 MW | the money is enough for more than the stated capacity at the cheapest observed rate |
| Capacity at ₹70 crore a megawatt | 448 MW | and for less at the top of the band |
| Conclusion | the stated capacity and the stated money come from the same design | not from two separate press releases |
That is a low bar and almost nobody clears it. Of the large records in this registry, SentraForge at ₹188.6 crore a megawatt, ReNew at ₹93.3 and L&T at ₹167 do not; their rupee figures cover more than data halls. AM AI Factory’s figure sits in the middle of the band the way a genuine engineering estimate does.
There is a caveat that cuts the other way. The project is described as green integrated, which in Andhra Pradesh usage usually means some generation is bundled with it. If generation is inside the ₹31,387 crore, the data-centre-only rate is lower than ₹61.3 crore — which would make the building cheaper still, or the capacity larger. No split has been published.
A 512 MW approval with a rupee figure that reconciles, a fixed build period, a published incentive cap and a named parent is the most complete record in the registry.
It is still a government order and a field. Nothing has been built and no customer exists.
3The order, line by line
Government orders are where Indian data centre incentives are actually written, and they are rarely read. This one is worth reading because it sets out what the state is paying.
| Incentive | Terms | Value |
|---|---|---|
| Stamp duty | Exemption | capped at ₹16 crore |
| Capital subsidy | 10% of plant and machinery over ten years | capped at ₹300 crore |
| Net SGST | 100% reimbursement during construction | capped at ₹490 crore |
| Transmission charges, electricity duty, cross-subsidy surcharge | 20-year exemption | not quantified in reviewed reporting |
| Power infrastructure | State facilitation | not quantified |
| Water supply | State facilitation and assurance | not quantified |
The three capped items total ₹806 crore, or 2.6% of the ₹31,387 crore investment. That is a modest subsidy by the standards of what Indian states are now offering, and it is disclosed, which most are not.
The uncapped item is the one that matters. A 20-year exemption from transmission charges, electricity duty and cross-subsidy surcharge on a 512 MW load is a very large number — power is the single biggest operating cost of a data centre and these three charges together are a meaningful share of an Indian industrial electricity bill. Any operator reading this order should note that the state has given away more in operating cost relief than in capital subsidy, and that the capital subsidy is capped while the operating relief, at least as reported, is not.
It is also a caution. An incentive this generous on power will attract capacity that is uneconomic elsewhere. Andhra Pradesh is buying scale with electricity, and it is doing so on a load that will consume 3.14 terawatt hours a year.
43.14 terawatt hours a year
512 MW is an abstraction. The number that a utility, a chiller vendor or a power trader actually cares about is annual energy, and almost nobody computes it.
| Measure | Value | Basis |
|---|---|---|
| Annual energy at 70% average load | 3.14 TWh | 512 MW × 8,760 hours × 0.70 |
| Annual energy at 85% average load | 3.81 TWh | 512 MW × 8,760 hours × 0.85 |
| Electricity spend at ₹6 a kilowatt hour | about ₹1,880 crore a year | 3.14 TWh at ₹6,000 a megawatt hour |
| Electricity spend over ten years | about ₹18,800 crore | before tariff escalation |
| Share of the ₹31,387 crore project cost | 0.6 years of power | a data centre’s build cost is roughly seven months of its electricity bill |
The last line is the one that reframes everything. For a facility of this kind, the electricity bill is the same order of magnitude as the capital cost. That is why the state’s power incentives are worth more than its capital subsidy, why renewable procurement determines the economics more than the building does, and why a data centre operator’s most important supplier is not a chiller company but a generator.
It also sets the size of the opportunity for anyone selling into this site. A 3.14 TWh annual load does not buy one contract. It buys a continuous relationship covering supply, tariff management, open access, storage and demand response for twenty years.
Gridvik has used a 70% load factor as the central case. The true figure depends on the tenant mix and is not published; at 85% load the annual energy is 3.81 TWh and the ten-year power spend is about ₹22,800 crore.
5Who is AM Intelligence Labs
This is the weakest part of an otherwise strong record, and the order is explicit about why it matters.
| Item | Position |
|---|---|
| Applicant | AM Intelligence Labs Private Limited submitted the proposal |
| Approved entity | AM AI Factory (Vizag) Private Limited |
| Condition | Incentives apply only while the parent organisation holds at least 51% of AM AI Factory (Vizag) |
| The other 49% | Not identified in the order. No joint-venture partner, investor, technology provider or customer is named |
| Public information | Nothing substantive. AM Intelligence Labs is not a company with a published data centre track record, a website describing built campuses or a disclosed customer |
| What Gridvik will not do | Assume a link to any other Indian entity using similar initials. Similar names are not evidence of common ownership |
That gap matters more here than it would for Reliance or STT, because this is a 512 MW commitment from an entity the market cannot assess. The state has clearly assessed it — a Mega Project classification and a ₹806 crore incentive package with a fixed build period is not given to an unknown applicant by accident — but the assessment is not public.
The practical consequence for a supplier is a credit question, not a technology question. A 512 MW build needs several billion dollars of debt and equity. Before quoting a hundred crore of chillers, the sensible question is who is signing the purchase order and what its balance sheet looks like.
6Timeline
- The Andhra Pradesh cabinet clears the proposal, among others, with a stated employment potential of 1,000 and an investment of ₹31,387 crore
- G.O. Ms. No. 59 approves AM AI Factory (Vizag) Private Limited for a 512 MW green integrated AI data centre at Amanam village, Bheemunipatnam mandal, with a two-year four-month establishment period and tailor-made incentives
- PTI, Business Standard, ETDatacenters, New Indian Express, BW Businessworld and News9 report the approval. Andhra Pradesh confirms 512 MW is one of four data centre approvals in the month totalling about ₹2.83 lakh crore
- Regional reporting continues to describe the facility as approved and under development, with no construction confirmation
- No acreage, power sanction, water allocation, generation source, technology partner, EPC contractor, customer or construction start is in the public domain
7Procurement
8Assumptions and method
| Figure | Basis | Confidence |
|---|---|---|
| 512 MW | G.O. Ms. No. 59. Basis — IT or facility load — not stated | High as approved capacity |
| ₹31,387 crore | Same order, described as a cumulative investment and as the incentive ceiling | High |
| ₹61.3 crore per MW | Gridvik arithmetic: ₹31,387 crore ÷ 512 MW | Arithmetic |
| $3.55 billion | ₹31,387 crore ÷ 88.40 | Arithmetic |
| Two years and four months | The order. Implies about December 2028 | Stated period, no milestone |
| ₹16 crore, ₹300 crore, ₹490 crore | Reported incentive caps attached to the order | Medium — the order text is published but the caps are from secondary reading of it |
| ₹806 crore and 2.6% | Gridvik arithmetic summing the three caps against ₹31,387 crore | Arithmetic, and a floor because uncapped items are excluded |
| 3.14 TWh a year | Gridvik arithmetic: 512 MW × 8,760 × 0.70 | Arithmetic with a stated load assumption |
| ₹1,880 crore a year of power | 3.14 TWh at ₹6,000 a megawatt hour | Arithmetic with a stated tariff assumption |
| 1,000 jobs | The order | Employment commitment |
9Limits and open questions
10Sources
Sources: Government of Andhra Pradesh G.O. Ms. No. 59, PTI, Business Standard, The Hindu BusinessLine, ThePrint, ETDatacenters, New Indian Express, BW Businessworld, News9, Times of India, Medianama, Andhra Pradesh Data Centre Policy 4.0.