The Andhra Pradesh government has issued environmental clearances for hyperscale AI data centres being developed near Visakhapatnam by Google and the Adani Group. This announcement comes just days before a foundation laying ceremony scheduled for April 28, to be officiated by Chief Minister N Chandrababu Naidu.
However, local activists have voiced strong opposition, citing concerns over the adequacy of the scrutiny process for a project of this unprecedented scale. They have requested the revocation of the recent clearances and called for a comprehensive environmental impact assessment (EIA) to be conducted by the Union government, along with public consultations, which they argue have been overlooked. Activists contend that the clearance was granted in a rushed manner, lacking transparency, particularly given that 90% of one proposed site overlaps with a reserve forest.
Initially announced as a 1 gigawatt (GW) AI data centre project, environmental clearances were granted to two Special Purpose Vehicles (SPVs) owned by Adani Infra by the State Environment Impact Assessment Authority (SEIAA) of Andhra Pradesh on April 18. Together, these data centre parks are projected to require approximately 500 kilolitres of water daily.
The project falls under Category B2 of the Union government’s Environmental Impact Assessment Notification, 2006, which simplifies the clearance process, requiring only state-level authorization from the SEIAA. This designation means the project does not necessitate a full EIA or public consultations. Activists have argued that, due to its proximity to the Kambalakonda Wildlife Sanctuary, it should be reclassified as Category A, which would necessitate Union Ministry oversight.
The categorization of projects under the EIA is contingent upon their scale and potential impact on both human health and natural resources. In a statement released on April 27, the civil rights organization Human Rights Forum (HRF) expressed alarm over the lack of rigorous assessment concerning the project’s “water use, air pollution, ecological impact, hazard risks and climate implications.”
Originally announced in October 2025, the data centre project entails a considerable footprint, with the state government initially allotting 480 acres, which has since expanded to 601.4 acres for its development in partnership with Adani Group and Airtel. The land has been allocated to three SPVs fully owned by Adani Infra: Vizag Hyperscale Data Center Park Limited, Vizag Mega Data Center Park Limited, and Vizag Rambilli Data Center Park Limited.
The two SPVs applied for environmental clearance online on April 9, with discussions held the following day involving representatives from the SPVs and a private environmental consultancy, Pridhvi Envirotech. Approval was granted swiftly on April 18. The SEIAA, established under the EIA Notification 2006, is responsible for granting environmental clearances, while the SEAC aids in evaluating projects and forwarding recommendations.
Criticism has arisen regarding the expedited nature of the approval, with retired IAS officer EAS Sarma suggesting that the SEAC was not afforded adequate time to conduct a thorough evaluation of such a significant project. The EIA Notification categorizes projects into Category A and Category B, based on size and impact, with only Category B1 requiring a full EIA report and public consultations.
In this case, the data centre project was categorized as B2, which does not necessitate these additional assessments. The SEIAA’s clearance notes that nearly 90% of the proposed site for Tarluvada lies within the Pedda Chukka Konda Reserve Forest yet justifies this classification by referencing a “Survey of India topo sheet” indicating no forest within the proposed land. Furthermore, the clearance acknowledges the proximity of the Kambalakonda Wildlife Sanctuary, positioned approximately 1.53 km away from the project site.
Sarma has formally appealed to the Union Ministry of Environment, Forest and Climate Change (MoEF&CC), urging that the project be reclassified for Union-level appraisal and requesting a pause on all work until a thorough review is conducted. He emphasized that a topo sheet alone should not negate the potential classification of the site as a forest.
The proposed data centres are expected to consume substantial water and energy resources while providing limited employment opportunities, prompting criticism about the project’s overall value to the local community. The combined water requirement for the two parks totals 501 kilolitres per day, with most drawn from the Rural Water Supply and Sanitation Department.
Despite the expected high water consumption and energy demands, the HRF has pointed out that the project seems to generate minimal local employment. “Far from delivering any meaningful employment, these figures expose how little these projects offer in return for their vast footprint,” the organization stated.
The environmental clearance comes with several stipulations for the Adani Group, including compliance with waste management regulations and the installation of solar energy systems on one-third of the roof area. The project also stands to benefit from significant state and central subsidies, as the Andhra Pradesh government has committed to various incentives for the data centre, including land, water, and tax concessions.
As these developments unfold, questions remain regarding the long-term environmental implications of such large-scale projects in a region already grappling with water stress and ecological concerns. The scrutiny and classification of these projects will be pivotal in ensuring a balance between technological advancement and environmental sustainability.
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