Reliance Secures ₹1.08 Lakh Cr Andhra Pradesh Approval for Giga‑Scale AI Data Center and Cable Landing Station

• 854-acre mega campus in Vizianagaram to anchor one of India’s largest AI infrastructure investments

In a landmark move that could reshape India’s AI and digital infrastructure landscape, the Andhra Pradesh government has approved the allotment of nearly 855 acres of land to Reliance Industries Ltd for the development of a giga-scale AI Data Center (AIDC) and Cable Landing Station (CLS) in Vizianagaram district.

The project, carrying a proposed cumulative investment of ₹1,08,010 crore, marks one of the largest AI and data center investments announced in India so far and significantly strengthens Andhra Pradesh’s ambition to emerge as the country’s leading AI and digital infrastructure hub.

Under G.O. Ms No. 30 issued by the IT, Electronics & Communications Department on May 20, 2026, the state approved the allotment of 854.97 acres across Polipalli, Bhogapuram West and Bhogapuram East villages in Vizianagaram district for the project. The proposal also includes a dedicated Cable Landing Station — a critical component that would directly connect Andhra Pradesh to global internet and data traffic networks.

The approval comes as Andhra Pradesh aggressively positions Vizag and the north coastal belt as India’s next-generation AI and hyperscale data center corridor, leveraging abundant renewable energy, port connectivity, subsea cable access, and large land parcels.

Tailor-Made Incentives for Mega AI Investment

The state government has extended a customized package of fiscal and non-fiscal incentives to Reliance under the Andhra Pradesh Data Center Policy 4.0 (2024–29), which was designed to attract advanced AI-enabled data center projects.

Among the key incentives approved:

• 25% discount on land allotment value
• 100% exemption on stamp duty and registration charges
• ₹1 per unit power tariff subsidy for 15 years
• Exemption from transmission and wheeling charges for 20 years
• Electricity duty exemption for 15 years
• SGST reimbursements on construction and leasing
• Water tariff subsidy and long-term water supply support
• OPGW fibre access discounts and right-of-way fee waivers

The government has also directed APTRANSCO to facilitate grid infrastructure development for the campus, while APIC has been asked to explore joint ownership models for a desalination plant to support the project’s long-term water requirements.

Accenture Secures Majority Stake in DLB to Power AI‑Ready Data Centers

Accenture has signed an agreement to acquire a 65% majority stake in DLB Associates, a U.S.-based data center engineering and consulting firm. The move strengthens Accenture’s end-to-end capabilities in data center development, particularly to meet rising demand for AI-enabled infrastructure.

DLB Associates was founded in 1980 by Don Beaty, an engineer who built the firm into a global leader in data center consulting and mission‑critical infrastructure design. The company is privately held and has not raised external funding, meaning it does not have institutional investors.

Key Facts About the Deal

• Stake acquired: 65% majority stake in DLB Associates and affiliated companies.
• Date announced: December 16, 2025.
• DLB’s expertise: Founded in 1980, specializes in data center site selection, due diligence, design engineering, commissioning, construction quality management, and energy optimization services.
• Employees: Around 620 staff, led by David Quirk and Neil Chauhan, will join Accenture’s Industry X practice.
• Strategic goal: Help software, platforms, and high-tech clients accelerate time-to-market and address infrastructure constraints driven by AI adoption.
• Financial terms: Not disclosed.

Strategic Impact

Aspect	Accenture Before Deal	DLB Associates	Post-acquisition Impact
Core Focus	Consulting, digital transformation, Industry X	Data center engineering & consulting	Expanded end-to-end data center capabilities
AI Infrastructure	Advisory & integration	Site selection, design, commissioning	Stronger ability to deliver AI-ready infrastructure
Global Reach	Multinational clients	U.S.-based expertise	Integration into Accenture’s global Industry X
Leadership	Julie Sweet (CEO)	David Quirk, Neil Chauhan	DLB leadership joins Accenture Industry X
Client Value	Strategy + operations	Technical execution	Faster deployment, reduced infrastructure constraints

Risks & Considerations

• Integration challenges: Aligning DLB’s engineering-heavy culture with Accenture’s consulting model.
• Market competition: Other firms are also acquiring data center specialists.
• AI-driven demand: Rapid growth in AI workloads could strain even expanded infrastructure capacity.
• Regulatory approvals: Transaction subject to customary closing conditions.

Why This Matters

• This acquisition highlights how AI adoption is reshaping infrastructure strategy.
• Consulting firms like Accenture are embedding engineering capabilities to deliver AI-ready data centers.
• For clients, this means faster deployment, reduced risk, and integrated expertise from site selection to commissioning.

India’s First Data Center IPO, Sify Infinit Files for Rs 3700 Cr IPO

Sify Infinit Spaces Limited, one of the leading providers of data center colocation services in India, in terms of built information technology (“IT”) capacity, as of March 31, 2025, according to the Lattice and C&W Report has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).

The company’s initial public offering comprises a fresh issue of equity shares aggregating up to ₹2,500 crore and an offer for sale of equity shares aggregating up to ₹1,200 crore by the selling shareholders — Kotak Data Center Fund (₹643 crore) and Kotak Special Situations Fund (₹557 crore).

In consultation with the BRLMs, Sify Infinit Spaces may consider undertaking a Pre-IPO placement of specified securities aggregating up to ₹500 crore, as permitted under applicable law, prior to the filing of the Red Herring Prospectus with the Registrar of Companies. If undertaken, the amount raised from such Pre-IPO placement will be reduced from the Fresh Issue size.

The company proposes to utilise the net proceeds from the Fresh Issue towards partial funding of capital expenditure for the completion of Tower B at its Chennai 02 data center and the construction of Towers 11 and 12 at its Rabale Data Center in Navi Mumbai amounting to Rs 465 crore and 860 crore respectively . A portion of the proceeds will also be used for the repayment or prepayment of certain borrowings amounting to Rs 600 crore while the balance will be deployed towards general corporate purposes.

Part of the Sify Group that pioneered private internet services in the late 1990s and promoted by Sify Technologies, Sify Infinit Spaces is a leading data center infrastructure company in India, offering colocation, interconnection, build-to-suit, and value-added services across its nationwide network.

It leverages the groups over 3 decades expertise across network, data center, and digital services, the company provides secure, sustainable, and energy-efficient digital infrastructure solutions tailored to client needs. As of March 31, 2025, it held a 15.26% market share by built IT capacity in India.

The Vegesna Ananta Koti Raju led company saw its first data center commenced operations in 2000, marking one of the earliest commercial data centers in India. Its hyperconnected infrastructure supports a wide range of workloads, each of it being purpose-built to provide high availability, robust security, scalable architecture and sustainability for hyperscale and enterprise clients.

As of June 30, 2025, the Company operated 14 colocation data center facilities across six major cities and demand hubs such as Mumbai, Chennai, Noida, Hyderabad, Bengaluru, and Kolkata with a combined built IT power capacity of 188.04 megawatts (MW).

Mumbai(Airoli) and Bengaluru data centers, catering to cloud hosting (public and hybrid), and Noida, Hyderabad, and Kolkata locations serving a broad range of enterprise workloads supported by advanced air, liquid, and immersion cooling systems.

Between Fiscal 2023 and Fiscal 2025, Sify Infinit expanded its built capacity by 95.41 MW, the highest addition among its peers.

SISL serves a diversified client base of over 500 customers, including three of the top four global Hyperscaler companies operating in India and seven of the top ten Indian banks (based on Fiscal 2024 revenues), as per the 1Lattice and C&W Report in its DRHP.

Its client mix spans sectors such as financial services, fintech, social media, OTT, manufacturing, retail, and healthcare industries for which digital infrastructure is mission-critical.

Moving towards AI driven workloads - three of its newest facilities i.e Rabale, Tower 5; Chennai 02 Tower B; Noida 02 Tower B have received certifications for AI workloads and advanced cooling technologies (air and liquid) from NVIDIA, have achieved Indian Green Building Council Platinum ratings, and are TIA-942 Rated 4 certified by the Telecommunications Industry Association (TIA). They can host workloads of up to 130 kilowatt (“kW”) per rack using direct-to-chip technology.

The Company has consistently demonstrated strong financial performance, with revenue from operations increasing from ₹10,213.40 million in Fiscal 2023 to ₹14,283.65 million in Fiscal 2025, reflecting its sustained growth momentum. EBITDA rose from ₹4,126.06 million in Fiscal 2023 to ₹6,342.46 million in Fiscal 2025, with EBITDA margins improving from 40.40% to 44.40% during the same period. Profit After Tax (PAT) also increased from ₹966.86 million in Fiscal 2023 to ₹1,263.60 million in Fiscal 2025.

A data center is a specialized facility designed to house computing, storage, and networking equipment. It serves as the physical foundation for digital services, enabling the storage, processing, and transmission of vast volumes of data. India’s data center demand is rapidly increasing, projected to grow at a CAGR of 30.1-35.1% (in IT MW terms) during Fiscal 2025-2030, reflecting the critical role data centers play in the country’s digital transformation.

JM Financial Limited, CLSA India Private Limited, J. P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited and Morgan Stanley India Company Private Limited are the Book Running Lead Managers to the issue.