Why In News?

Environmental groups and local communities are protesting the proposed 1 GW Google-Adani hyperscale AI data centre in Visakhapatnam due to severe ecological risks, high water consumption, and the displacement of marginalized Dalit farmers.

 

What is the Proposed AI Data Centre Project?

The Visakhapatnam AI Data Centre is India's largest proposed AI infrastructure project, being developed through a partnership involving Google, AdaniConneX (Adani Group) and Nxtra by Airtel. 

 

 The project aims to make Visakhapatnam India's AI infrastructure capital, supporting cloud computing, generative AI, semiconductor ecosystems and digital services while attracting global technology investments. 



Why are AI Data Centres Important for India?

Support the IndiaAI Mission: AI data centres provide hyperscale computing needed for AI startups, researchers and enterprises. 

  • They complement the ₹10,371.92 crore IndiaAI Mission (2024–29) and support the rollout of 18,693 GPUs through the IndiaAI Compute Portal.

 

Promote Digital Economy: The proposed Visakhapatnam AI Hub will begin with 1 GW of AI compute capacity, expandable to 6.5 GW by 2029–30, helping accelerate AI, cloud computing and digital services under the Viksit Bharat 2047 vision.

 

Attract Investment: Google's US$15 billion investment over 2026–2030 is its largest investment in India, expected to generate about 1.88 lakh direct and indirect jobs and catalyse further AI infrastructure investments.

 

Improve Data Sovereignty: Domestic AI data centres ensure sensitive Indian data is processed within India, supporting the Digital Personal Data Protection Act, 2023. 

  • The America–India Connect initiative will establish a new international gateway at Visakhapatnam with three new subsea cable routes, strengthening India's global digital connectivity.

 

Boost Global Competitiveness: India's installed data-centre capacity is currently about 1.5 GW, while the Visakhapatnam project alone aims for 6.5 GW, positioning India as a major AI infrastructure hub in Asia.



What are the Major Environmental Concerns?

High Water Consumption

A fully developed 6.5 GW AI data centre could consume up to 160 million litres/day (MLD) of water for cooling—around 40% of Visakhapatnam's daily water supply, raising concerns in an already water-stressed region.

 

Large Electricity Demand

The proposed 6.5 GW power requirement is estimated to be about seven times Visakhapatnam's current electricity demand, increasing pressure on the grid and potentially raising greenhouse gas emissions if backed by fossil-fuel generation.

 

Ecological Impact

The proposed Adavivaram campus is located about 120 metres from the Mudasarlova Reservoir and close to the Kambalakonda Wildlife Sanctuary Eco-Sensitive Zone, posing risks to reservoir catchments, biodiversity, forests and wildlife habitats.

 

Environmental Governance

Critics allege the project was split into smaller components and processed under Category B2 of the EIA Notification, 2006, avoiding a comprehensive Category A environmental appraisal and mandatory public hearing despite its proximity to an eco-sensitive area.

 

Community & Livelihood Concerns

Environmental groups have also raised concerns over land acquisition, displacement of Dalit farmers, hill cutting and deforestation, arguing that local livelihoods and ecosystem services may be adversely affected.




International Case Studies on AI Data Centres and Lesson For India

 

Country

Case Study

Key Lesson for India

Australia (Sydney)

In 2026, OpenAI–NEXTDC abandoned plans to use recycled water for a 612 MW AI data centre due to infrastructure constraints and shifted to waterless cooling. New South Wales now imposes limits on water use and Power Usage Effectiveness (PUE) for new data centres. (Source: Reuters)

Promote zero-/low-water cooling and integrate sustainability requirements into project approvals.

Austria (Kronstorf)

Residents opposed Google's hyperscale data centre over concerns that it could consume up to 2 TWh of electricity annually (enough for 900,000 homes) and discharge 5.8 million litres/day of warm treated water into the River Enns. Over 10,000 citizens signed a petition demanding greater transparency. (Source: The Times)

Mandate public consultation, environmental assessment and transparent disclosure of resource use.

Netherlands (Eemshaven)

Google shifted from potable water to industrial canal water for cooling its data centre to protect local drinking-water supplies during drought conditions.  

Encourage non-potable/recycled water for cooling in water-stressed regions.

Microsoft  

Microsoft reduced Water Usage Effectiveness (WUE) by  90% (from 2.3 L/kWh to 0.27 L/kWh) and introduced zero-water cooling AI data-centre designs. It aims to be water positive by 2030. 

Adopt water-efficient cooling, renewable energy and corporate water stewardship.

Google  

Google aims to replenish more freshwater than it consumes by 2030 and reported that 87% of its freshwater withdrawals in 2025 came from low- or medium-risk water basins. 

Link AI infrastructure with watershed restoration and responsible water sourcing.

 

Global experience shows that AI infrastructure succeeds when technological expansion is matched by strict environmental safeguards, water-efficient cooling, renewable energy and transparent public participation.  

 

 

What Measures Can Promote Sustainable AI Infrastructure?

Comprehensive Environmental Impact Assessment (EIA)

Mandate Category A environmental appraisal for hyperscale AI data centres based on power capacity and environmental footprint, not just built-up area, with compulsory public hearings for ecologically sensitive locations.

 

Mandate Renewable Energy

Require AI data centres to source electricity from renewable energy, battery storage and green open-access power. India's electricity demand from data centres is projected to reach 13.56 GW by 2031–32, making clean energy integration essential.

 

Adopt Water-Efficient Cooling

Promote direct-to-chip liquid cooling, immersion cooling, adiabatic cooling and closed-loop systems to reduce freshwater consumption. These technologies are already being adopted by India's data-centre industry.

 

Strengthen Public Consultation

Make water demand, electricity consumption, carbon emissions and EIA reports publicly available and conduct statutory consultations with affected communities before project approval.

 

Develop Green Data Centre Standards

Introduce mandatory national standards on Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), renewable-energy use and carbon reporting. The IndiaAI Mission already incorporates PUE benchmarks for empanelled AI compute providers.

 

Continuous Environmental Monitoring

Require third-party environmental audits, real-time monitoring of water use, energy efficiency, heat emissions and groundwater extraction, with periodic public disclosure.

Protect Local Communities

Ensure fair compensation, rehabilitation, land-leasing models and livelihood restoration for displaced communities, particularly vulnerable groups, while balancing digital infrastructure development with environmental justice.

 

Conclusion 

Balancing AI infrastructure with ecological sustainability requires India to enforce strict environmental regulations, mandate green technologies, and prioritize community rights over unchecked corporate expansion.

 

 

Source: THEHINDU

 

 

 

PRACTICE QUESTION

Q. "The rapid expansion of AI infrastructure presents India with a dual challenge of promoting digital innovation while safeguarding ecological sustainability." Discuss. 150 words