In a written reply to Rajya Sabha MP Sudha Murty on August 6, Minister of State for Environment Kirti Vardhan Singh clarified that AI data centres are not inherently required to obtain environmental clearance under the Environmental Impact Assessment Notification, 2006.
Nevertheless, such clearance is mandatory if a data centre qualifies as a large building, construction, or township project as outlined in the notification.
Data centres with a built-up area surpassing 20,000 square metres must acquire prior clearance under Item 8(a) of the EIA schedule. This requirement also applies under Item 8(b) for township or area-development projects that encompass at least 50 hectares or have a built-up area of a minimum of 1.5 lakh square metres, or meet both criteria.
For projects that fall into these classifications, environmental clearance is provided by the State Environment Impact Assessment Authority at the state or Union Territory level.
This indicates that data centres are currently evaluated based on their construction footprint rather than being recognized as a separate industry with specific environmental clearance regulations tailored to their computing power, electricity requirements, or water consumption.
How is water use assessed?
The government noted that authorities review freshwater availability, particularly in areas facing water stress, when evaluating qualifying building projects. Water-balance reports, anticipated greywater generation, and plans for recycling and reusing it are taken into account before implementing any safeguards.
Water usage and discharge during both the construction and operation phases of data centres are also governed by the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981. Compliance is overseen by state pollution control boards or pollution control committees.
Groundwater extraction for commercial and infrastructure projects is regulated by guidelines issued by the Jal Shakti Ministry in September 2020, updated in March 2023.
The Centre further highlighted the Bureau of Energy Efficiency’s District Cooling Guidelines, 2023, recommending the use of treated water in cooling towers wherever possible. These guidelines promote efficient cooling systems, alternative water sources, and conservation strategies, but are not specific regulations developed exclusively for AI data centres.
An India AI Impact Summit working group has been established to investigate energy efficiency, water management, and environmental resilience across digital and AI infrastructure, the government stated.
Also Read: Over 250 data centres planned by 2030; expected to create 4.3 lakh jobs and drive housing demand: Report
Public resistance grows over data centre expansion
This parliamentary response arrives as Google’s $15-billion AI data centre project in Visakhapatnam encounters protests and legal challenges regarding its potential impact on local water supplies and surrounding wildlife.
Activists and children have been seen protesting with signs that read “We cannot drink DATA”. Government data reported by Reuters indicates that Visakhapatnam receives approximately 410 million litres of water daily, compared to a requirement of 480 million litres.
Petitioners have raised concerns about the project’s proximity to the Kambalakonda Wildlife Sanctuary and contended that categorizing data centres as building projects enables them to bypass more rigorous environmental assessments and public consultations.
The Andhra Pradesh government has dismissed these allegations, assuring that water allocated for residential or rural use will not be redirected. Google has committed to adhering to Indian regulations and utilizing advanced air-cooling technology to conserve local water resources.
The protests have polarized public opinion, with Paytm founder Vijay Shekhar Sharma labeling the opposition to AI and data centres as a “woke mindset” and warning of potential setbacks for India, stating it could leave the country “in the last century.”
“India must not fall victim to any anti-AI, anti-data centre, or anti-tech protests that we observe in the West,” Sharma expressed on X, underlining that such attitudes must be “strictly” addressed.
