Amaravati, [State]: In a forceful defence of the state government’s ambitious digital infrastructure push, Andhra Pradesh IT Minister Nara Lokesh on Wednesday rejected growing environmental concerns over the proposed development of large-scale data centres in Visakhapatnam. Replying to a question raised by Jana Sena MLA Lokam Naga Madhavi in the Legislative Assembly, Lokesh framed the data-centre boom as a strategic imperative, not merely an industrial opportunity. He underscored that Google’s decision to invest in Visakhapatnam had already catalysed interest from numerous other global technology companies, strengthening the city’s prospects of emerging as a premier data-centre destination. The minister’s remarks come at a pivotal moment, as the southern coastal city finds itself at the centre of a national debate over how to balance rapid digital economic growth with environmental sustainability and resource management. Lokesh made it clear that the government views data centres as high-priority infrastructure essential for India’s technological self-reliance, rather than as conventional industrial projects that warrant the same level of environmental scrutiny. His statement was part of a broader attempt to assure the Assembly that the state’s plans are both necessary and responsible, and that concerns over water and power usage are either exaggerated or based on outdated technological assumptions.
Emphasising the strategic importance of data centres, Lokesh argued that they are indispensable for the growth of an AI-driven digital economy and for safeguarding India’s data sovereignty in an increasingly complex geopolitical landscape. He pointed out that as more countries tighten data localisation laws and as global cloud providers seek secure and stable locations for storage and processing, India must build its own robust digital infrastructure to avoid becoming a mere consumer of foreign services. In this context, Visakhapatnam’s emergence as a data-centre hub aligns with the national interest, he said. The minister also provided technical details about the scale of the proposed ecosystem: the state has targeted a massive 6.5-gigawatt data-centre capacity, a benchmark that is expected to catapult Andhra Pradesh into the top tier of global digital infrastructure markets. Lokesh acknowledged that, based on current cooling technologies, such a capacity would require an estimated 3 TMC (thousand million cubic feet) of water annually. However, he quickly added that advances in cooling systems are likely to significantly reduce water consumption in the coming years, saying that newer technologies such as liquid cooling and closed-loop systems are becoming more efficient and will lower the per-megawatt water footprint. He therefore argued that evaluations of the project’s environmental impact should not be frozen in the present, but should account for the technology curve and the industry’s evolving best practices.
Addressing the most sensitive concern, the minister clarified that the water requirement for data centres would be met entirely from the industrial allocation of the Godavari river waters via the Polavaram project, and would in no way affect drinking water supplies for Visakhapatnam residents. This distinction was crucial, as local fears have centred on the possibility that a booming data-centre industry could drain water resources needed for domestic consumption and agriculture. Lokesh assured the House that the government is fully committed to meeting the city’s long-term water needs through the Polavaram project, and that a gravity-based water supply system is expected to become operational within the next 18 months. He explained that this system would significantly enhance the reliability and capacity of Visakhapatnam’s water infrastructure, thereby eliminating any trade-off between urban needs and industrial requirements. Furthermore, he announced that dedicated pipelines would be laid specifically for supplying water to data centres, ensuring that not a single litre of water meant for households is diverted. This technical separation of supply lines, he argued, should reassure citizens and activists that the data-centre expansion is being planned with adequate safeguards. The minister’s emphasis on dedicated infrastructure was clearly intended to counter the narrative that the state is taking a reckless path, and instead project an image of careful, forward-looking planning.
Lokesh also sought to reframe the water debate by drawing a comparison with conventional industries. He noted that a 1 GW thermal power plant consumes nearly ten times more water annually than a data centre of equivalent capacity, and questioned why similar scrutiny was not being applied to industries with vastly higher water footprints. The minister’s rhetorical point was aimed at what he implied was an unfair level of attention on data centres, which he described as being relatively water-efficient compared to legacy industrial sectors. He stressed that data centres are critical for the future economy and deserve a more balanced evaluation of their resource use. Lokesh further revealed that Chief Minister N. Chandrababu Naidu has fixed a cap of 6.5 GW for data-centre allocations in the state, and that this target has already been achieved. That announcement is significant, as it signals that the state will no longer approve unlimited expansions; rather, future allocations will be selective and will favour companies with strong environmental and sustainability credentials. The cap, according to Lokesh, is a demonstration of the government’s commitment to responsible growth. He said that applicants who demonstrate superior water efficiency, renewable energy use, and a clear carbon-reduction roadmap will be prioritised, aligning the state’s economic ambitions with global climate goals.
The minister’s remarks come against the backdrop of unusually vocal opposition in Visakhapatnam. Residents have launched what are believed to be some of the country’s first organised protests against large-scale data centres, sparked by anxiety over the potential strain on land, electricity, and water resources. These citizen-led movements have gained traction on social media and in community meetings, with activists questioning the transparency of environmental and resource-use assessments. Many residents are concerned that the rapid expansion of digital infrastructure, often perceived as invisible and remote, will place unbearable pressure on the city’s existing utilities and transform its character. They have demanded public disclosure of detailed water and power requirements, environmental impact assessments, and long-term sustainability plans for every proposed data-centre campus. The protests have also raised deeper questions about who benefits from such investments and whether local communities will see meaningful gains in employment or public amenities. The state government has sought to counter these concerns by pointing to the potential for job creation, ancillary industry growth, and improved digital infrastructure. However, the persistence of the protests suggests that the government’s assurances have not fully assuaged public fears, and the issue is likely to remain a political flashpoint in the run-up to state decisions on land allocation and environmental clearances.
The debate in Andhra Pradesh unfolds against the backdrop of the Government of India’s aggressive push to position the country as a global digital infrastructure hub. At the AI Impact Summit held in February, Prime Minister Narendra Modi urged global technology companies to store and process their data in India, highlighting the country’s immense potential as a destination for AI infrastructure. The Centre has taken substantial policy steps to encourage investments, including granting infrastructure status to data centres in 2022, which enables cheaper financing and more favourable regulatory treatment. In the most recent Union Budget, the government went further by extending tax incentives for eligible foreign cloud service providers until 2047, a move designed to lure long-term capital into the sector. Several states, including Andhra Pradesh, Maharashtra, Tamil Nadu, and Telangana, have also introduced dedicated policies and incentives to attract data-centre investments, ranging from streamlined approvals to subsidised power. This convergence of federal and state-level support has led industry analysts to predict a sustained boom in data-centre construction across India. Yet, as Visakhapatnam’s fragile politics demonstrate, the road to becoming a digital powerhouse is not without its friction points. The challenge for governments at all levels will be to reconcile the undeniable economic and strategic benefits of data localisation with the finite resources and legitimate anxieties of local communities. Lokesh’s strong defence in the Assembly signals that the Andhra Pradesh government is determined to push forward, but the success of its vision may ultimately depend on its ability to build genuine trust with the citizens of Visakhapatnam through greater transparency, robust mitigation measures, and a demonstrable commitment to sustainability.
