CM assures investors over water availability

Chief Minister N. Chandrababu Naidu has assured the technology industry that water shortages will not prevent the development of large-scale data centres in and around Visakhapatnam.

Speaking during a fireside chat at the 31st CII Partnership Summit in Visakhapatnam on November 13, 2026, he said the State had sufficient water resources and alternative technologies to meet the requirements of the proposed facilities.

According to Naidu, the planned data centre projects would collectively require approximately 3.5 TMC of water.

Polavaram project expected to strengthen supply

The Chief Minister said the Polavaram irrigation project on the Godavari River could help bring up to 100 TMC of water annually to the Visakhapatnam region.

He indicated that the project was expected to become operational by March 2027. The proposed water supply arrangements are intended to support the region's expanding industrial and technology requirements.

Cooling technologies and desalination among alternatives

Naidu also highlighted alternative methods of meeting data centre water requirements. These include desalination and emerging air-cooling technologies, which could reduce dependence on conventional water-intensive cooling systems.

He said the government would explore available resources and technologies to ensure that water availability did not become a constraint on investment.

More than 6 GW of data centre capacity planned

The announcement comes as more than 6 GW of hyperscale data centre capacity is at various stages of development in the Visakhapatnam region.

Among the major proposals is Google's $15-billion AI infrastructure project, which includes a proposed 1 GW hyperscale data centre. ReNew Energy Global has also announced a proposed 1 GW green data centre in Anakapalli with an investment of approximately ₹67,000 crore.

Other major digital infrastructure investments are also being planned in the region.

Water security remains an important consideration

The government's assurances come amid public and expert discussions about the water requirements of large data centre clusters and the region's existing water supply challenges.

Earlier reports have highlighted the need for dedicated pipelines, storage facilities and additional water infrastructure to serve industrial and data centre projects.

While the Chief Minister has expressed confidence in future water availability, the timely completion of water infrastructure and adoption of efficient cooling technologies will be important for balancing industrial growth with the needs of local communities.