Andhra Pradesh IT Minister Nara Lokesh on Wednesday, 19 August defended the state government's plan to establish a data centre hub in Visakhapatnam, asserting that concerns over water and environmental impact were rooted in misinformation. Speaking on the floor of the State Legislative Assembly in Amaravati, Lokesh said the projects pose no threat to the city's drinking water supply and represent a critical investment in India's digital future.

What Lokesh Said in the Assembly

The minister was responding to a question raised by Jana Sena MLA Lokam Naga Madhavi. Lokesh said data centres are indispensable to an AI-driven digital economy and to India's data sovereignty, particularly given emerging geopolitical pressures. He noted that Google's decision to invest in Visakhapatnam had already triggered broader interest from other IT companies in the city.

On water usage, Lokesh said that once the proposed data-centre ecosystem reaches its targeted capacity of 6.5 GW, it is estimated to consume approximately 3 TMC of water annually based on current technology. He added that newer cooling technologies are expected to reduce that figure further over time.

Water Source and Infrastructure Plan

Lokesh clarified that water for the data centres would be drawn exclusively from the industrial allocation under the Polavaram project — not from the supply earmarked for Visakhapatnam's residents. He said the government is committed to meeting the city's urban water needs through Polavaram as well, with a gravity-based supply system expected to be operational within 18 months. Dedicated pipelines for data centres would be laid separately, he added.

To contextualise water consumption, Lokesh offered a pointed comparison: a 1 GW thermal power plant consumes nearly 10 times more water annually than a data centre of equivalent capacity. He questioned why public opposition over water usage had been directed specifically at data centres while thermal plants faced no similar scrutiny.

Capacity Cap and Environmental Commitment

Lokesh disclosed that Chief Minister N. Chandrababu Naidu had set a firm ceiling of 6.5 GW for data-centre allocations in the state, and confirmed that this target has now been fully met. He said the government would going forward prioritise companies demonstrating strong environmental responsibility. The data centres are coming up at Adavivaram-Mudasarlova, Tarluvada, and Rambilli areas in Visakhapatnam.

Opposition and Citizen Concerns

The minister's remarks come amid sustained pushback from multiple quarters. Citizens' groups in Visakhapatnam have opposed the data centre hub, citing fears of strain on water and power resources and broader environmental degradation. They have pointed to a Super El Niño-like weather pattern that has already stressed water availability across Andhra Pradesh as grounds for caution.

The Communist Party of India (CPI) and the Communist Party of India (Marxist) (CPI-M) have also opposed the projects, alleging adverse effects on the environment, drinking water sources, and public health. The government has not yet independently verified or addressed the specific claims raised by these groups beyond Lokesh's assembly statement.

What Comes Next

With the 6.5 GW allocation ceiling now reportedly reached, the immediate focus shifts to execution — dedicated pipeline infrastructure, Polavaram gravity-supply timelines, and the adoption of water-efficient cooling technologies. How the government manages transparency around industrial water drawdowns from Polavaram will likely determine whether public trust in the project can be rebuilt.