India is on the cusp of a data centre boom, with significant expansions in states like Telangana and Andhra Pradesh. Hyderabad's data centre capacity has skyrocketed from 60.9 MW in 2022 to 151.4 MW by the end of 2025, positioning it as a key player in the digital economy. However, this rapid growth raises critical sustainability questions that are largely being overlooked. Activists and environmentalists are sounding alarms about the environmental clearances granted to these facilities. Many projects are being classified under a regulatory category meant for ordinary construction, circumventing the necessary scrutiny that would typically accompany large industrial installations. This lack of oversight risks exacerbating the strain on local resources, particularly water and electricity, which are already under pressure from the burgeoning demand of these facilities.
The planned data centres in Andhra Pradesh, including Google's campuses in Vizag, are projected to consume vast amounts of water and power, raising concerns about their environmental impact. Activists argue that the projects should undergo rigorous environmental assessments to ensure transparency and accountability. The situation mirrors challenges faced in the United States, where community pushback has stalled billions in data centre investments due to concerns over infrastructure impacts. As India seeks to position itself as a leader in AI and cloud infrastructure, it must learn from these international missteps and prioritize sustainable practices.
