India’s rapid push to become a global hub for AI and data centres is triggering growing concerns over the environmental impact of these highly resource-intensive facilities, particularly their massive water and energy requirements.

The concerns come amid a wave of large-scale investments in AI infrastructure across the country, including Google’s proposed data centre and AI hub in Visakhapatnam, Andhra Pradesh, which is expected to become one of the company’s largest facilities outside the United States.

Experts and environmental groups warn that data centres consume enormous amounts of electricity and water for cooling operations. According to reports, more than half of India’s existing data centres are located in water-stressed regions, increasing pressure on already strained local resources.

Industry analysts say India’s data centre capacity has expanded rapidly, rising from around 375 MW in 2020 to more than 1,500 MW in 2025, largely driven by growing AI adoption, cloud computing demand, and digital transformation initiatives.

Activists and policy experts are also raising questions about the lack of a dedicated national data centre policy and the absence of clear environmental clearance norms specific to the sector. They argue that data centres should be classified as a separate infrastructure category because of their significant resource consumption.

Also Read: Schneider Electric Sees India Data Centre Business Outpacing Core Growth Amid AI Boom

At the same time, companies and government agencies are exploring newer cooling technologies such as direct-to-chip liquid cooling, immersion cooling, rainwater harvesting, and wastewater reuse systems to reduce environmental impact and improve sustainability.

As India accelerates investments in AI-ready infrastructure, experts say balancing digital growth with climate resilience, water security, and renewable energy adoption will be critical for the long-term sustainability of the country’s data centre ecosystem.

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