Key facts
- Amazon plans to invest $21 billion in AI infrastructure in India by 2030.
- Microsoft has a four-year, $20.5 billion investment plan for AI data centers in India.
- Google plans a $15 billion data center project in Andhra Pradesh.
- Data centers are projected to use over 300 billion liters of water by 2030.
- 60% to 80% of Indian data centers could face high water stress this decade.
India's push to become a global AI hub is encountering significant local opposition as the rapid construction of data centers strains resources and sparks community concerns. Prime Minister Narendra Modi's ambition to host the world's data is colliding with the realities faced by residents in areas like Mumbai and Andhra Pradesh, where projects by tech giants Amazon, Google, and Microsoft are drawing criticism.
Residents near a planned Amazon facility in Mumbai are protesting, citing potential burdens on local power and water supplies, as well as noise pollution. Tushar Shetty, a homeowner whose apartment overlooks the site, expressed dismay that the lush greenery was replaced by an Amazon facility, part of the company's $21 billion investment plan in India by 2030. Similar concerns have been raised globally, from Virginia to Amsterdam, where data centers face pushback over their environmental and social impact.
Amazon and local authorities have defended the Mumbai project, asserting that water and power will be sourced independently and noise-mitigation measures will be in place. However, protests have continued, with residents demanding the project be relocated. Amazon is reportedly drawing up community outreach plans, acknowledging the need to address concerns, though internally, officials are said to be unconcerned about the protests' long-term impact.
Microsoft has also committed $20.5 billion over four years for AI data centers in India. Meanwhile, in Andhra Pradesh, environmentalists are opposing Google's $15 billion data center project, raising alarms about wildlife, water, and power supplies, and alleging improper land use. The backlash has gained political traction, with opposition leaders vowing to relocate projects if elected.
Industry executives also question the placement of data centers in residential zones. Sharad Agarwal, CEO of Sify Infinit Spaces, stated he would not build data centers near homes due to the critical need for uninterrupted power and water, which can be jeopardized during shortages. Property brokers in Mumbai suggest that concerns over views and property values might be impacting resale prices in areas near the new developments.