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Brookfield-Reliance JV plans $11b AI data center in India
Digital Connexion, a joint venture between Reliance Industries Ltd., Brookfield Asset Management Ltd., and Digital Realty Trust Inc., has signed a memorandum of understanding to invest US$11 billion by 2030 for a data center campus in Visakhapatnam, in the southern Indian state of Andhra Pradesh.
The project will create a 1 gigawatt AI-native data center on a 400-acre site, according to a company statement.
Digital Connexion signed a memorandum of understanding with the Andhra Pradesh Economic Development Board to move the project forward.
This comes as major tech companies increase investments in India’s data center sector.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
Public plans leave questions on delivering 1 GW continuous power to Visakhapatnam by 2030
- Andhra Pradesh Transmission Corporation (APTRANSCO), the state grid operator, is executing transmission projects worth over INR 120 billion and planning a phase-3 Green Energy Corridor with a Rs 28,000 crore investment, yet public notices do not map capacity or a schedule to Visakhapatnam’s industrial zone 12.
- A 1 gigawatt (GW) data center needs steady power on that order. Public records list no substation expansion or High Voltage Direct Current (HVDC) link dedicated to Visakhapatnam 12.
- Meeting 2030 hinges on timely transmission upgrades. Google announced about US$15 billion for an AI hub in the city, which will lean on the same grid.
- CBRE pegs India’s data center spend above US$100 billion by 2027. Execution still depends on state transmission plans, and Andhra Pradesh could trail project headlines.
AP’s Green Energy Open Access framework enables direct renewable energy (RE) procurement for large loads such as data centers
- The Andhra Pradesh Electricity Regulatory Commission (APERC) 2024 Green Energy Open Access rules let entities with 100 kilowatts (kW) or more contracted demand buy renewable power directly from generators using the grid, rather than only from distribution companies (DISCOMs) 3.
- Monthly banking is allowed with an 8% charge, and 75% payment for unused banked energy at Solar Energy Corporation of India (SECI) discovered rates 3.
- Data centers can sign hybrid power purchase agreements that blend wind, solar, and battery storage. Settlement runs at 15 minute intervals for tighter load matching 3.
- Processing fees are ₹150,000 for long term, ₹100,000 for medium term, and ₹50,000 for short term Green Energy Open Access 3.
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