AP Cabinet clears AVGC-XR, robotics policies and Rs 31,387 crore data centre

The Andhra Pradesh Cabinet, chaired by Chief Minister N. Chandrababu Naidu, approved two new industry policies aimed at young technology sectors at its meeting at the State Secretariat on Tuesday, 10 November 2026. The AVGC-XR Policy 2026-31 covers animation, visual effects, gaming, comics and extended reality, and the AP Robotics and Physical AI Policy covers machines that use artificial intelligence to act in the physical world. At the same meeting the Cabinet cleared a 512 MW green integrated AI data centre at Amanam in Bheemunipatnam mandal of Visakhapatnam district, with an investment of Rs 31,387 crore, according to reports of the meeting.

For founders, the two policies matter more than the big-ticket projects. Animation studios, game developers, visual-effects houses and extended-reality start-ups are usually small, young companies, and so are most robotics start-ups. A dedicated state policy usually sets out what support such firms can claim from the government. By approving separate policies for AVGC-XR and for robotics and physical AI, Andhra Pradesh is signalling that it wants these businesses in the state, not only large data centres and factories.

The catch is that the terms are not yet public. None of the reports of the meeting list the incentives, the eligibility conditions or the money set aside. Founders will have to wait for the government orders that formally notify the policies before they can plan around them.

The data-centre approvals show where the state's larger bets lie. The Visakhapatnam region is collecting several AI data-centre projects, and the 512 MW Amanam project was first approved by a state government order in August, when it was reported under the company name AM AI Factory Pvt Ltd. Tuesday's Cabinet decision adds the Cabinet's formal backing. For smaller technology firms, a cluster of large data centres can mean local demand for computing services, maintenance, software and skilled staff.

Peepals calculation: Rs 31,387 crore for 512 MW of capacity works out to about Rs 61.3 crore per megawatt (31,387 ÷ 512 = 61.3). The Dixon investment of Rs 700 crore is about 2.2% of the data centre's figure (700 ÷ 31,387 = 0.022). Our calculation from the reported figures.

Short-term: The next step is the formal government orders notifying the two policies, which will spell out the incentives. Companies already planning projects in Visakhapatnam, Anakapalli, Vizianagaram and Tirupati can move to the next stage of land and approvals.

Long-term: If the AVGC-XR and robotics policies offer meaningful support, they could draw studios and hardware start-ups to Andhra Pradesh's cities, which compete with other tech hubs such as Hyderabad and Bengaluru for such firms. The data centres, if built, would add large new demand for power and technical jobs around Visakhapatnam.

Who is affected: Animation, gaming, VFX and extended-reality studios; robotics and physical AI start-ups; students and young professionals in these fields; data-centre developers and electronics makers; and residents of the districts where the projects will be built.

What to watch next: The government orders notifying the AVGC-XR Policy 2026-31 and the Robotics and Physical AI Policy, with their incentive details.

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