The Andhra Pradesh Cabinet, chaired by Chief Minister N. Chandrababu Naidu, approved the Andhra Pradesh Robotics and Physical AI Policy 2026-36 at the State Secretariat in Velagapudi on 10 November 2026. It also allotted about 25 acres at Bhogapuram to Reliance Industries for a gigascale AI data centre and cleared a ₹570.20 crore Epack unit for AI data centre equipment.

The decisions add a policy layer to the state’s push to become an AI infrastructure hub along the Visakhapatnam coast, where projects such as Google’s first hyperscale data centre in India are already planned.

What the Andhra Pradesh Physical AI Policy covers

The Robotics and Physical AI Policy 2026-36 is aimed at industries that combine artificial intelligence with machines that act in the physical world. According to reports of the meeting, it targets robotics manufacturers, AI technology developers and companies that deploy intelligent industrial equipment. The Cabinet also approved an Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) Policy 2026-31 and amendments to the state’s Semiconductor and Display Fab Policy.

The incentives, eligibility rules and budgets under the new policy have not been made public yet. They are expected in the government orders that formally notify the policy. The move follows similar state bets on the sector, such as the Uttar Pradesh Cabinet’s PRAGATI Robotics and AI Park in Greater Noida.

AI data centre approvals in north Andhra

The Cabinet cleared three AI infrastructure items across the Visakhapatnam region:

• Reliance Industries: about 25 acres at Bhogapuram in Vizianagaram district for a gigascale AI data centre.
• Epack: an AI data centre equipment manufacturing unit at Rambilli in Anakapalli district, with an investment of ₹570.20 crore and 2,565 expected jobs.
• AM Intelligence: a 512 MW green integrated AI data centre at Amanam in Bheemunipatnam mandal, Visakhapatnam district, with an investment of ₹31,387 crore and about 1,000 jobs.

The AM Intelligence project is not new. A state government order (G.O.Ms.No.59) dated 22 August 2026 had already approved it through project company AM AI Factory (Vizag) Private Limited, with a completion window of two years and four months and tailor-made incentives under the state’s Data Center Policy 4.0. The Greenko founders’ AI venture is also building a separate 1-GW AI compute hub in Hyderabad and is seeking up to $3 billion for Nvidia chips.

The Bhogapuram land is a concrete step for Reliance, whose chairman Mukesh Ambani had earlier set out a ₹10 lakh crore plan to build AI infrastructure in India. The Cabinet also reviewed progress on the Adani Cloud Hub project, according to The Hans India.

Why it matters for India’s AI infrastructure

Andhra Pradesh is trying to attract the whole AI supply chain, not only data centre capacity: compute, the equipment that goes into the halls, and now robots and AI-driven machines. For CIOs, more capacity in India supports data residency and lower latency for AI workloads. The open question is demand. A recent study found India has $300 billion in data centre pledges but GPUs at about 20% use, so the details of the physical AI incentives will matter for whether the state builds users as well as capacity.

Key takeaways

• Andhra Pradesh approved a Robotics and Physical AI Policy 2026-36 on 10 November 2026; incentives will follow in a government order.
• Reliance Industries got about 25 acres at Bhogapuram for a gigascale AI data centre.
• Epack will invest ₹570.20 crore in an AI data centre equipment plant at Rambilli, with 2,565 expected jobs.

FAQ

What is the Andhra Pradesh Robotics and Physical AI Policy?

It is a 10-year state policy for 2026-36, approved by the Cabinet on 10 November 2026, to attract robotics makers, AI developers and companies using AI-driven industrial machines.

Can companies apply for incentives under the policy now?

Not yet. The incentives and eligibility rules will be set out when the government notifies the policy, as reported by The Hindu’s report on the Cabinet decisions.

Featured image: Visakhapatnam skyline seen from offshore. Photo: Drashokk via Wikimedia Commons (CC BY-SA 4.0)

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