The Zhitong Finance App learned that in Visakhapatnam in the southern Indian state of Andhra Pradesh, a hillside has been leveled into layers of terracotta steps, and excavators are roaring day and night on the exposed ground — this is the “largest in history” Indian investment project construction site planned by Google (GOOGL.US), and a $15 billion AI data center hub is rising to the ground. However, what is heating up in sync with the progress of the project is the growing opposition of environmentalists.
From the “we can't drink data” street protests, to public interest lawsuits in the Andhra Pradesh High Court, to three separate cases in India's National Green Court — a hyperscale data center with a planned capacity of 2.5 gigawatts (GW), spanning the three parks of Rambili, Taluwada, and Adhavivaram, and is expected to create 188,000 jobs, is facing an unprecedented “crisis of legitimacy.”
The “red terraces” under gigawatt ambitions
The construction site in Talluwada, a suburb of Visakhapatnam, is busy. The hillside has been leveled, the exposed red clay has been converted into terraced steps, and excavators are still working on the exposed ground. This is the core of Google's $15 billion investment over the next five years — an AI data center campus with a planned capacity of about 2.5 gigawatts, spanning three plots of land in Ranbili, Tarluwada, and Adhavivaram.
This is Google's biggest investment in India and its most expensive AI hub outside the US. The project is being promoted by Google in collaboration with Indian billionaire Gautam Adani's group, and Bhatti Telecom will provide connectivity support. Google plans to complete this grand layout between 2026 and 2030, and the first 1 gigawatt data center is expected to open in September 2028. The Andhra Pradesh government expects the project to create as many as 188,000 jobs.
However, the roar at the construction site has not subsided, and opposition from environmentalists has come from all sides.
“We can't drink data”: An angry cry over the water crisis
The current state of water supply in Visakhapatnam is the source of this controversy. According to government data, the city with a population of 2.5 million supplies about 410 million liters of water per day, but the actual demand is as high as 480 million liters. Water restrictions are already the norm in the local area.
Activists believe that Google's data center will further exacerbate the already tight water supply situation. Raja Rama Mohan Roy, founder of the non-profit organization Green Visakha, presented tight data on water supply and demand in Visakhapatnam at a public rally and bluntly stated: “Development should not be at the expense of people's livelihoods.” Campaign group Jal Biradari filed a public interest lawsuit with the Andhra Pradesh High Court alleging that the project would put pressure on nearby Mudasalova Reservoir, thereby exacerbating water supply constraints.
On the streets of Andhra Pradesh, protests have spread from professional environmental organizations to ordinary citizens and even children. At Sunday's rally, activists have made plans to carry out household promotion and beach protests over the next few days. On social media, protesters held “We Can't Drink Data” banners and handcuffed the Google logo.
The “last 860 meters” of wild animals: the project brings ecological concerns to leopards and pangolins
In addition to disputes over water resources, the ecological impact of project site selection has also attracted great attention. The site is just 860 meters from the Kambalakonda Wildlife Sanctuary — the sanctuary is home to leopards and pangolins.
The public interest lawsuit filed by the Andhra Pradesh High Court stated that vibrations and noise caused by large-scale construction may interfere with wild animals in the protected area. The Human Rights Forum has filed three lawsuits with India's National Green Court to stop construction of the project. The organization alleges that the project passed the approval process in just nine days without full public hearings, and that satellite images showed that construction activities had begun before the official environmental permit was approved.
Responses and wrestling from all parties
Faced with growing opposition, all parties are engaged in a complicated struggle.
The Andhra Pradesh government denied that the project was hastily released, saying the activists' concerns were “inaccurate and misleading.” But the government also said it was willing to listen: “This kind of protest is their democratic right. If any of these claims are true, the Government undertakes to communicate to provide factual clarification and appropriate remedies”. Regarding the distance between the construction site and the protected area, the state government said it had exceeded the minimum requirements stipulated by law. Local councilor Sribharat also publicly stated that the data center will not cause a water crisis or power shortage.
Google responded that the construction of the project will comply with all applicable laws and use “advanced air cooling technology to protect important local water resources.” Regarding the noise issue, Google promised to take sound insulation measures to ensure “a quiet, undisturbed neighborhood.” The company also said that the data center will use a water source separate from the local drinking water supply and that environmental audits have been carried out. However, Green Visakha is concerned about the government's promise to “guarantee” water supply for the project for 20 years. In a situation where citizens are already generally facing water restrictions, this promise has raised heated questions.
Paytm founder Vijay Shekhar Sharma criticized the protests, calling them “anti-AI” acts.
India's epitome of a wave of global data center protests
Google's plight in Visakhapatnam is not an exception. Across the world, the rapid expansion of data centers is facing an increasingly intense community backlash. In July of this year, American protesters held 142 events in 42 states to express similar concerns. In India alone, residents of Andhra Pradesh and Maharashtra recently took to the streets to oppose hyperscale data center projects within their respective states.
Water resources are becoming a core risk factor for AI infrastructure. A single data center can consume millions of gallons of water for cooling. In the context of increasing climate change and increasing global water pressure, risk assessments for data center site selection must place “water availability” as important as “electricity costs” and “network delays.”
And the cost of obtaining a Social License to Operate (Social License to Operate) is rising dramatically. Even if the project is approved by the government, legal challenges, construction delays, and loss of reputation can greatly reduce the return on investment if it fails to gain approval from the local community.
Critics call this phenomenon “digital colonialism” — developing countries provide land, water, and electricity to global tech giants at an environmental cost. The Andhra Pradesh High Court will hear the case again on August 24, and India's National Green Court is also facing three lawsuits. The end result of these legal processes may set an important precedent for how India's future large-scale data center projects will be reviewed.
As a result, emerging markets are not “regulatory depressions.” India's National Green Court's intervention shows that even in emerging markets that are viewed as foreign-friendly, the enforcement of environmental laws cannot be underestimated. Under the wave of global environmental awareness, any attempt to bypass the EIA “fast track” could become a future litigation trap.