
Andhra Pradesh IT Minister Nara Lokesh on Wednesday defended the state government's decision to establish data centres in Visakhapatnam, addressing the Assembly. According to reports from Business Standard, Lokesh said deliberate misinformation was being spread over their environmental and water requirements. The minister emphasized that Google's decision to invest in Visakhapatnam had triggered wider interest from other IT companies in the city. Lokesh also highlighted that data centres are critical to the AI-driven digital economy and India's data sovereignty, particularly amid emerging geo-political challenges. As reported by The Times of India, Lokesh was responding to a question raised by Jana Sena MLA Lokam Naga Madhavi during the legislative assembly proceedings.
Lokesh explained that once the proposed data-centre ecosystem reaches the targeted 6.5 GW capacity, it is estimated to require around 3 TMC (thousand million cubic ft) of water annually based on current technology. As reported by Business Standard, he stressed that newer cooling technologies are expected to reduce water consumption further. The minister noted that water for data centres would come from the industrial allocation of Polavaram Project water, without diverting water meant for the port city's residents. According to The Times of India, Lokesh emphasized that a 1 GW thermal power plant consumes nearly 10 times more water annually than a data centre, questioning why protests over water usage were focused only on data centres.
According to the minister's statement reported by Business Standard, dedicated pipelines would be provided for data centres. Lokesh highlighted that the government is committed to supplying Visakhapatnam's urban water requirements through Polavaram Project with gravity-based supply expected within 18 months. Chief Minister N Chandrababu Naidu had set a clear ceiling of 6.5 GW for data-centre allocations, and declared that the target has now been fully achieved. As reported by The Times of India, data centres are coming up at Adavivaram-Mudasarlova, Tarluvada, and Rambilli areas in Visakhapatnam.
As reported by Business Standard, Lokesh said the government would prioritise companies that demonstrate strong environmental responsibility. He emphasized that data centres are critical to the AI-driven digital economy and India's data sovereignty, particularly amid emerging geo-political challenges. The minister also compared water consumption, stating that a 1 GW thermal power plant consumes nearly 10 times more water annually than a data centre, questioning why protests over water usage were focused only on data centres. However, citizens' groups in Visakhapatnam have opposed the data centre hub, highlighting concerns over the strain on resources such as water and power, as well as its environmental impact. According to The Times of India, the CPI and CPI(M) have been opposing data centre projects in and around Visakhapatnam, alleging that the projects would adversely affect the environment, drinking water sources and public health.