Andhra's Minister of Information Technology, Nara Lokesh, stated that the state of Andhra Pradesh is implementing a sustainable development approach as part of the planned expansion of data centers. This includes a mandatory condition that at least 70% of the energy consumed by data centers must come from renewable sources.
The state aims to make Visakhapatnam a major data center hub to attract significant technological investments and develop digital infrastructure. However, data centers are traditionally energy and water-intensive facilities, making reliable access to these resources, as well as environmental sustainability, key aspects for large-scale expansion.
Speaking at an event in the form of a 'fireside chat' organized by the Public Affairs Forum of India (PAFI), Lokesh noted that the state is comprehensively addressing the environmental challenges of data center growth, focusing on energy, water, and other resource needs simultaneously.
He emphasized that the main principle is ensuring that a minimum of 70% of the energy used by data centers comes from renewable sources such as solar, wind, pumped hydro, and battery energy.
Furthermore, the state is developing a data center cluster in Visakhapatnam and plans to address water supply issues through the Polavaram Left Bank canal. Lokesh reported that the Polavaram project will help utilize water that would otherwise flow into the Bay of Bengal, directing it to Visakhapatnam to meet the needs of data centers.
The state is also encouraging data center companies to build desalination plants; Lokesh added that one such company has already begun construction of a similar facility.
Since data centers can consume large volumes of water for cooling, this raises concerns about the impact on local water resources, especially amid the state's drive to attract major investments in the sector. Lokesh concluded that Andhra Pradesh is adopting a 'holistic approach' to data center development, considering energy, water, and other environmental requirements together. This comprehensive approach is critical for regions seeking to attract and develop large investments in the data center sphere while addressing sustainable development issues.