Naidu assures investors over water availability

Water requirements for the proposed data centre projects in Visakhapatnam came into focus at the 31st CII Partnership Summit, with Chief Minister N. Chandrababu Naidu assuring investors that water availability would not become an obstacle to the State’s plans.

Speaking to journalist Palki Sharma during the summit on November 13, Naidu said the proposed data centres would need around 3.5 TMC of water. He stated that Andhra Pradesh had the potential to bring up to 100 TMC of water to Visakhapatnam annually through the Polavaram project.

The Chief Minister also pointed out that a considerable quantity of river water currently flows into the sea and could be put to productive use. He mentioned desalination and emerging air-cooling technologies as other options to meet the requirements of the facilities.

Major data centre investments planned around Vizag

Visakhapatnam is emerging as a major destination for large-scale data centre investments, with more than 6 GW of hyperscale capacity at various stages of development.

Among the major proposals is Google’s planned $15 billion investment in a 1 GW artificial intelligence data centre and digital hub. ReNew Energy Global has also announced plans for a 1 GW green hyperscale data centre in Anakapalli, near Visakhapatnam, with an investment of ₹67,000 crore.

Reliance Industries had earlier announced an $11 billion plan through its joint venture Digital Connexion to develop a 1 GW AI-ready data centre park in Visakhapatnam.

These projects are expected to support the growth of artificial intelligence, digital infrastructure and related industries in the region.

Water concerns remain an important issue

The proposed expansion has also brought attention to the region’s long-term water requirements. Visakhapatnam already faces periodic water shortages, and residents and environmental groups have raised questions about how large industrial projects will secure water without affecting domestic supply.

The State government has previously said that residential water allocations would not be diverted to data centres and that industrial requirements would be met through dedicated arrangements and additional sources.

Naidu said the projects would also benefit from alternative cooling technologies and additional water resources. However, the actual availability of the proposed supply will depend on the completion of supporting infrastructure and the implementation of the planned projects.

CM highlights wider economic opportunities

Naidu said the data centre investments would create opportunities beyond direct employment. He expects the projects to support a wider ecosystem around artificial intelligence, the knowledge economy and data-driven decision-making.

He also spoke in favour of linking the Godavari and Cauvery rivers, saying the proposal could help address water shortages, droughts and floods in southern India. He said the Polavaram project was expected to become operational by March 2027.

For Visakhapatnam, the challenge will be to turn the proposed investments into operational facilities while ensuring that the city's water needs and environmental concerns are addressed.