Artificial intelligence (AI) data centres are not required to obtain environmental clearance merely because of the nature of their operations, the Union government has told Parliament, amid mounting concerns over the water and electricity consumed by such facilities.

In a written response to Rajya Sabha MP Sudha Murty on August 6, Minister of State for Environment Kirti Vardhan Singh said AI data centres do not per se require environmental clearance under the Environmental Impact Assessment Notification, 2006.

However, clearance becomes mandatory when a data centre qualifies as a large building, construction or township project under the notification.

A data centre with a built-up area exceeding 20,000 square metres requires prior clearance under Item 8(a) of the EIA schedule. The requirement also applies under Item 8(b) when a township or area-development project covers at least 50 hectares, has a built-up area of at least 1.5 lakh square metres, or meets both conditions.

For projects falling within these categories, environmental clearance is granted by the State Environment Impact Assessment Authority at the state or Union Territory level.

This means data centres are currently assessed through their construction footprint rather than as a distinct industry with environmental-clearance requirements tailored to their computing capacity, electricity demand or water consumption.

How is water use assessed?

The government said authorities examine freshwater availability, particularly in water-stressed regions, while appraising qualifying building projects. Water-balance reports, the expected generation of greywater and plans for its recycling and reuse are also considered before safeguards are prescribed.

Water use and discharge during the construction and operation of data centres are additionally regulated under the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981. Compliance is monitored by state pollution control boards or pollution control committees.

Groundwater extraction for commercial and infrastructure projects is governed by the guidelines issued by the Jal Shakti Ministry in September 2020 and amended in March 2023.

The Centre also pointed to the Bureau of Energy Efficiency’s District Cooling Guidelines, 2023, which recommend using treated water in cooling towers wherever feasible. The guidelines encourage efficient cooling systems, alternative water sources and conservation measures, but are not standalone regulations specifically framed for AI data centres.

An India AI Impact Summit working group has now been tasked with examining energy efficiency, water management and environmental resilience across digital and AI infrastructure, the government added.

Also Read: Over 250 data centres in pipeline by 2030; to create 4.3 lakh jobs, drive housing demand: Report

Public resistance grows over data centre expansion

The parliamentary response comes as Google’s $15-billion AI data centre project in Visakhapatnam faces protests and legal challenges over likely impact on local water supplies and nearby wildlife.

Activists and children have marched with placards declaring “We cannot drink DATA”. Visakhapatnam receives about 410 million litres of water daily against a requirement of 480 million litres, according to government data cited by Reuters.

Petitioners have also questioned the project’s proximity to the Kambalakonda Wildlife Sanctuary and alleged that classifying data centres as building projects allows them to avoid more extensive environmental scrutiny and public consultation.

The Andhra Pradesh government has rejected the allegations and said water reserved for residential or rural use will not be diverted. Google has said it will comply with Indian regulations and use advanced air-cooling technology to conserve local water resources.

The protests have also divided public opinion. Paytm founder Vijay Shekhar Sharma called opposition to AI and data centres a “woke mindset” and warned that it could leave India “in the last century”.

“India must not become victim of any anti AI, anti Data center or any anti-tech protests we see in west,” Sharma wrote on X, adding that such a mindset must be “strictly” dealt with.