AP Backs Vizag Data Centres, Promises Separate Water Pipeline

Andhra Pradesh IT Minister Nara Lokesh has defended the government’s push to develop Visakhapatnam as a data centre hub, saying concerns over water consumption and environmental impact are being amplified through what he called deliberate misinformation.

Speaking in the Assembly on Wednesday, Lokesh said Google’s investment decision in Visakhapatnam had generated interest among several other technology companies and strengthened the city’s prospects of emerging as a major digital infrastructure destination. He said data centres were becoming critical to an AI-driven digital economy and would have a strategic role in protecting India’s data sovereignty, particularly amid changing geopolitical conditions.

The proposed data centre ecosystem is planned to reach a combined capacity of 6.5 GW, Lokesh said. Based on current technologies, the facilities could require approximately 3 TMC of water annually once the targeted capacity becomes fully operational. However, he stressed that this estimate could decline as companies adopt newer cooling systems designed to improve efficiency and reduce dependence on water.

Lokesh sought to address concerns that the planned projects could place additional pressure on Visakhapatnam’s existing water resources. He made it clear that water meant for the city’s residents would not be diverted to data centres.

Instead, the facilities will receive water from the industrial allocation of the Polavaram project, he said. The government is committed to bringing Polavaram water to Visakhapatnam through a gravity-based supply system, which is expected to become available within the next 18 months.

The minister added that dedicated pipelines would be developed for the data centres, keeping their water supply separate from the city’s requirements. The arrangement, he said, was intended to ensure that industrial expansion did not compromise the water needs of residents.

Lokesh also drew a comparison with conventional power generation to put the projected consumption into perspective. He said a 1-GW thermal power plant uses nearly 10 times more water annually than a data centre of comparable capacity.

Questioning the focus on data centres, he asked why their water consumption had become a major point of concern when other water-intensive industries operate at considerably higher levels.

He further said Chief Minister N. Chandrababu Naidu had fixed 6.5 GW as the upper limit for data centre allocations and claimed that the state had already reached the target.

Lokesh said the government would give preference to companies demonstrating a strong commitment to environmental protection, as Andhra Pradesh seeks to balance rapid digital infrastructure growth with resource sustainability.