Santosh Patnaik Visakhapatnam

Industries& Commerce Department has modified the sale agreement to be executed with Vizag Mega Data Center Park Limited at Tarluvada and Vizag Rambilli Data Center Park Limited at Rambilli and allotment of 5.84 acres of GVMC lands on lease basis duly adopting endowments lease rates in respect of Vizag Hyperscale Data Centre Park Limited at Adavivaram and Mudasarlova.

All these projects are part of Google's $15 billion gigawatt hyperscale AI data centre cluster for which groundbreaking was done by Chief Minister N. Chandrababu Naidu some time ago.

The MoU for the project was inked in the name of Raiden Infotech India Ltd, a fully owned subsidiary of Google, which announced partnerships with Adani Infrastructure and Nextra Data (Airtel).

After signing the MoU, the government allotted lands at three locations in the name of the SPVs-100 per cent subsidiary of Adani Infra (India) Ltd viz., for establishing AI data centers, viz, Vizag Hyperscale Data Center Park

Limited -160 Acres (Adavivaram and Mudasarlova, Visakhapatnam District); Vizag Mega Data Center Park Limited-266.6 Acres (at Tarluvada village, Visakhapatnam district); and Vizag Rambilli Data Center Park Limited-174.8 Cares (at Rambilli, Anakapalle district). The land at Rambilli was reduced to 159.80 acres subsequently depending on field conditions.

Consequently, Adani Infra (India) Limited, which is the primary notified partner for Raiden Infotech for building the data center for Google, sought modifications in sale agreement and adoption of endowments lease rates for GVMC lands.

Accordingly, with the remarks of the APIIC, the request of Adani Infra India Limited, was placed before the State Investment Promotion Board (SIPB) in its meeting held last month along with the recommendations of the State Investment Promotion Committee (SIPC).

After careful consideration of the decision of the SIPB, the government issued orders approving suitable modifications to the sale agreement of APIIC to be executed with Vizag Mega Data Center Park Limited at Tarluvada and Vizag Rambilli Data Center Park

Limited at Rambilli

Secretary, Industries and Commerce N Yuvaraj, stated in GO Ms. No. 213 that the government approved the allotment of 5.84 acres of GVMC lands at Adavivaram and Mudasarlova to the SPV of Adani Infra (India) Limited ie, Vizag Hyperscale Data Center park Limited on lease basis, duly adopting the lease rentals applicable to the adjacent Endowments Department lands i.e., @ 3 per cent of the SRO value with an escalation of 5 per cent every five years and other conditions as per the lease agreement entered with APIIC.

The government allowed inclusion of an enabling provision permitting External Commercial Borrowings (ECBs), in addition to the existing provision for financing through Government of India-approved financial institutions, considering the ultra-mega scale of the proposed investments.