Revanth Reddy Orders 100% Treated Water Use in Data Centres
Synopsis
Key Takeaways
With El Niño forecasts casting a long shadow over southern India's water future, Telangana Chief Minister A. Revanth Reddy chaired a high-level review on Sewage Treatment Plants (STPs) and treated water utilisation on Wednesday, 28 October 2026, issuing a sweeping directive: data centres and government offices must shift to 100 per cent treated water for all non-potable needs — no exceptions.
The El Niño Trigger Behind the Review
El Niño — the Pacific climate pattern that periodically chokes India's monsoons and tightens the grip of drought on rain-shadow states — sits at the heart of this directive. Telangana, whose capital Hyderabad has seen explosive urban growth since statehood in 2014, faces compounding pressure: rising water demand from a sprawling tech corridor on one side, and forecast rainfall deficits on the other. CM Revanth Reddy told senior officials that pre-emptive action now is the only way to prevent a full-blown drinking-water crisis later.
The instruction to officials was unambiguous — ensure uninterrupted potable water supply across the state while simultaneously redirecting treated wastewater away from drains and toward productive reuse. The two goals are inseparable: every litre of STP-treated water used for irrigation or cooling is a litre of freshwater saved for the tap.
Landscaping, Parks, and Construction Sites to Run on Recycled Water
Beyond the headline mandate on data centres, the CM directed officials to ensure that landscaping projects, public parks, and building construction sites use only STP-treated water. These categories collectively consume significant volumes of water in any fast-growing city, and shifting them to recycled supply would meaningfully reduce the draw on Hyderabad's reservoirs and groundwater. It is a model several other Indian states have piloted with mixed success — Telangana's push, backed by a direct CM-level order, raises the ambition of enforcement considerably.
Data Centres in the Cross-Hairs of Water Policy
The specific mention of data centres is the sharpest edge of this directive. Hyderabad has emerged as one of India's premier data centre hubs, with hyperscale facilities demanding enormous quantities of water for cooling. Mandating 100 per cent treated water for such facilities — and for government offices — transforms what has until now been a voluntary best-practice into a binding operational requirement. Officials have been instructed to put in place the mechanisms necessary to make this non-negotiable.
The policy aligns with national guidance under the Swachh Bharat Mission, launched in 2014, which directed states to build and upgrade urban sewage treatment infrastructure. Telangana now appears ready to push beyond construction toward mandated utilisation — a harder, more consequential step.
What Hyderabad's Water Future Depends On
The watch item now is whether the state government translates these review-room directives into formal government orders and tenders — particularly those requiring new data centre licences to demonstrate treated-water sourcing. Progress on STP capacity utilisation across Hyderabad and secondary cities will be the real measure of whether this review produces lasting change or remains on paper. The CM has set the direction clearly. Implementation is the test.