The Andhra Pradesh High Court has said that Vizag Hyperscale Data Centre Park Limited (VHDCPL), a special purpose vehicle owned by Adani Infra (India) Limited, may proceed with construction of an AI-ready data center campus in Visakhapatnam (Vizag), but advised that the developer proceed at its own risk.
The court offered the warning to the developer as, according to The Times of India, the project’s future is still subject to a final decision in a public interest litigation matter challenging several approvals granted to the project by the Andhra Pradesh government.
The data center campus, which will form part of Google’s AI hub in India, was announced in October 2025 as part of a multifaceted investment of approximately US$ 15 billion over five years. According to Adani’s initial announcement, the hub will house gigawatt-scale data center operations supported by a robust subsea cable network and clean energy to drive the most demanding AI workloads in India. The project would also, according to Adani, drive digital inclusivity and create tens of thousands of jobs in technology, construction, and clean energy.
However, as The Guardian reported in September, the project has been met with three petitions, filed with the National Green Tribunal, challenging the approvals granted by the government, alleging that the assessment of the risks to the environment and water supplies in the vicinity of the project was “grossly inadequate, scientifically unrealistic, and misleading”.
Those challenging the project have also alleged that due to the proximity of the project to the Kambalakonda Wildlife Sanctuary less than a kilometer away, approvals should have come from the central government rather than the state government.
While the Andhra Pradesh High Court has said that construction can proceed, it noted that any investment made in the project was at the developer’s own risk. It also said that any investment into the project could not be used as grounds to seek relief if the court ultimately rules that approvals were improperly granted.
Should the project move forward, the campus would be one of the largest AI hubs in India, where demand for the technology is growing rapidly. As outlined by MarketsandMarkets in July 2026, the AI market in India is expected to grow from a value of US$ 778.7 million in 2026 to US$ 4.37 billion by 2031 as adoption rises in the IT services, healthcare, financial, and other sectors.