Google’s $15 billion India AI bet faces environmental backlash

For years, India’s technology story has been defined by one recurring demand: build more. More factories, more chip plants, more cloud infrastructure, more digital capacity.

Now, one of the country’s biggest AI infrastructure investments is discovering that “build more” comes with a new caveat: build responsibly.

Google’s proposed AI data center campus in Visakhapatnam, part of its planned $15 billion investment in India between 2026 and 2030 alongside the Adani Group, has become the latest flashpoint in an emerging global debate over artificial intelligence infrastructure. Environmental activists have staged protests, children have marched carrying placards declaring, “We cannot drink DATA,” and legal challenges have reached both the Andhra Pradesh High Court and the National Green Tribunal.

Much brouhaha brews

The dispute is about far more than a single data center. It reflects a growing question confronting governments worldwide: can countries race to become AI superpowers while protecting finite natural resources?

Data centers have quietly become one of the most resource-intensive pieces of modern infrastructure. AI facilities require enormous quantities of electricity to train and run increasingly sophisticated models. Cooling thousands of high-performance processors also requires significant amounts of water or alternative cooling technologies, making local communities particularly sensitive in regions already facing water stress.

That explains why protesters in Visakhapatnam have focused less on artificial intelligence itself and more on what it consumes.

Green Visakha founder Raja Rama Mohan Roy argued that development should not come at the cost of local livelihoods, while presenting figures suggesting an existing gap between the city’s water demand and supply. Activist group Jal Biradari has similarly alleged that the project could place additional pressure on nearby reservoirs.

Environmental concerns extend beyond water. The proposed facility lies roughly 860 metres from the Kambalakonda Wildlife Sanctuary, prompting fears over construction activity, noise pollution and long-term ecological disruption. Three petitions have already been filed before India’s environmental tribunal seeking a halt to construction.

The Andhra Pradesh government has dismissed these concerns as misleading, maintaining that no residential or rural water supplies will be diverted and that the project complies with legal distance requirements. Google has also sought to reassure critics, saying the facility will use advanced air-cooling systems to minimise water consumption while incorporating sound-dampening measures to reduce its impact on surrounding wildlife.

Yet the controversy mirrors a trend that is becoming increasingly common across the world.

Global opposition to data centers grows

The United States has witnessed a surge in local opposition to AI infrastructure, with reports indicating more than 140 protests across 42 states over expanding data centers. Residents have raised concerns ranging from electricity consumption and water usage to land acquisition and environmental degradation.

In many ways, India is now encountering the same tension. Everyone wants AI services, faster cloud computing and digital transformation. Fewer people want the industrial infrastructure that powers those services in their backyard.

The debate also drew a sharp response from Paytm founder Vijay Shekhar Sharma, who criticised the protests on social media. Calling the resistance a “woke mindset,” Sharma argued that opposing AI infrastructure risks leaving India technologically behind at a time when countries are competing aggressively to attract advanced computing investments.

His comments highlight the widening divide between two visions of India’s future.

One sees AI infrastructure as essential national capacity, comparable to highways, ports and power plants. The other argues that technological progress cannot come at the expense of environmental sustainability and local communities.

As India pushes to become a global AI hub, that balancing act may prove just as important as attracting the billions of dollars in investment.