Andhra minister rejects concerns over Vizag data centres’ water use

Summary

Andhra Pradesh IT Minister Nara Lokesh has rejected concerns that the state’s planned 6.5-gigawatt data-centre ecosystem in Visakhapatnam will undermine the city’s water security. Speaking in the Andhra Pradesh Legislative Assembly on August 19, Lokesh said the full 6.5 GW ecosystem is estimated to require around 3 TMC (thousand million cubic feet) of water annually under current technology.

Lokesh said the data centres would receive water from the industrial allocation of the Polavaram Project, rather than supplies intended for Visakhapatnam residents. He also said dedicated pipelines would be provided for the facilities and that gravity-based Polavaram water supply for the city’s urban requirements is expected within 18 months.

The minister also defended the projects by comparing their water consumption with that of thermal power plants, saying a 1 GW thermal power plant consumes nearly 10 times more water annually than a data centre.

VISAKHAPATNAM, August 19, 2026 — Andhra Pradesh IT Minister Nara Lokesh has defended the state’s plans to develop Visakhapatnam as a major data-centre and artificial intelligence infrastructure hub, rejecting what he described as deliberate misinformation about the projects’ environmental and water requirements.

Speaking in the Andhra Pradesh Legislative Assembly on Wednesday, Lokesh said data centres are becoming critical infrastructure for the AI-driven digital economy and India’s data sovereignty. He said Google’s decision to invest in Visakhapatnam had generated wider interest from other technology companies.

Andhra Pradesh has set a 6.5 GW ceiling for data-centre allocations, and Lokesh said the target has now been fully achieved. He added that the government would give priority to companies demonstrating strong environmental responsibility.

Water requirement and Polavaram allocation

Lokesh said the proposed data-centre ecosystem, once it reaches its targeted 6.5 GW capacity, is estimated to require approximately 3 TMC of water a year based on current technology. He stressed that newer cooling technologies are expected to reduce water consumption further.

The minister said the water would come from the industrial allocation of the Polavaram Project, rather than from water intended for Visakhapatnam’s residents.

According to Lokesh:

• Industrial water allocation: Data centres are expected to be supplied through the industrial allocation associated with the Polavaram Project.
• Dedicated pipelines: Separate pipeline infrastructure will be provided for the data centres.
• Urban water supply: The government says Visakhapatnam’s urban water requirements will also be supplied through Polavaram, with gravity-based supply expected within 18 months.
• Water-use comparison: Lokesh said a 1 GW thermal power plant consumes nearly 10 times more water annually than a data centre.

The water figures surrounding the project have varied in public statements. In June, Lokesh had said that 1 TMC could support the planned 6.5 GW data-centre capacity, while his August 19 Assembly statement put the requirement at around 3 TMC annually based on current technology. The latest 3 TMC figure should therefore be used for reporting the minister’s August 19 remarks.

Cooling technology and environmental safeguards

Lokesh said newer cooling technologies are expected to reduce the amount of water required by data centres. However, the minister’s August 19 remarks did not provide a specific percentage reduction or state that all planned facilities would use a particular closed-loop, direct-to-chip or immersion-cooling architecture.

The state has said it will prioritise data-centre companies that demonstrate strong environmental responsibility. This indicates that cooling efficiency and broader environmental performance are becoming part of the government’s approach to future allocations, although detailed facility-level water-use standards were not specified in the reports reviewed.

Visakhapatnam’s emerging data-centre hub

Data-centre projects are being developed in locations including Adavivaram-Mudasarlova, Tarluvada and Rambilli in the Visakhapatnam region. Citizens’ groups and political organisations have raised concerns about potential pressure on water, electricity and the wider environment.

Google’s AI hub at Tarluvada is being developed with AdaniConneX and Nxtra by Airtel. Google broke ground on the project in April 2026 and described it as a gigawatt-scale AI infrastructure initiative. The company also said the wider development would include three subsea cable landing points in Visakhapatnam, strengthening the city’s international digital connectivity.

The broader Andhra Pradesh strategy therefore combines large-scale computing capacity with additional power and connectivity infrastructure. However, questions over water availability, environmental safeguards and the long-term impact on local resources remain part of the public debate surrounding the projects.

Why this matters

• Water security: The Andhra Pradesh government says data-centre water will come from an industrial allocation linked to the Polavaram Project rather than supplies intended for city residents.
• 3 TMC estimate: Lokesh’s latest Assembly statement puts the full 6.5 GW ecosystem’s estimated annual water requirement at around 3 TMC using current technology.
• 6.5 GW ceiling: The government says its 6.5 GW data-centre allocation target has been fully achieved, making the figure a central part of Andhra Pradesh’s digital-infrastructure strategy.
• Cooling efficiency: Lokesh said newer cooling technologies could reduce water consumption, although the government has not publicly specified an 80–90% reduction target in the August 19 statement reviewed.
• Infrastructure expansion: Google’s Visakhapatnam AI hub and planned subsea-cable infrastructure are positioning the city as an emerging centre for AI computing and international digital connectivity.
• Continued scrutiny: Residents’ groups and political organisations continue to question the projects’ potential effects on water, power and the environment, meaning the government’s assurances are likely to remain under scrutiny.

FAQs

Q1: What is the estimated water requirement for Visakhapatnam’s planned data centres?

According to Nara Lokesh’s August 19, 2026 statement in the Andhra Pradesh Assembly, the proposed 6.5 GW data-centre ecosystem would require around 3 TMC of water annually under current technology.

Q2: Why have different water figures been reported?

Lokesh previously said in June that 1 TMC of water would be sufficient for 6.5 GW of planned data-centre capacity. On August 19, however, he gave a higher estimate of around 3 TMC annually based on current technology. The newer Assembly statement is the appropriate figure for this report.

Q3: How will the state supply water to the data centres?

Lokesh said the facilities would receive water from the industrial allocation of the Polavaram Project, with dedicated pipelines provided for the data centres. He said the government would separately supply Visakhapatnam’s urban water requirements through Polavaram.

Q4: What is Andhra Pradesh’s data-centre capacity target?

The state has set a 6.5 GW ceiling for data-centre allocations, and Lokesh said on August 19 that the target had been fully achieved.

Q5: How do data centres compare with thermal power plants in water use?

Lokesh said a 1 GW thermal power plant consumes nearly 10 times more water annually than a data centre. This is a comparison cited by the minister and should be attributed to him rather than presented as an independently established universal ratio.

Q6: Will newer cooling technologies reduce water consumption?

Lokesh said newer cooling technologies are expected to reduce water consumption. However, the August 19 reports reviewed do not establish a specific 80–90% reduction for the Vizag projects, so that figure should not be presented as a confirmed government commitment.