The proposed ₹1.5 lakh crore AI Hyper-Scale Data Centre in Visakhapatnam will not use the city’s drinking-water allocation or regular domestic power grid, Telugu Desam leader and Andhra Pradesh Biodiversity Board chairman Neelayapalem Vijay Kumar said on Thursday, as he rejected objections over the project’s environmental and infrastructure impact.
Addressing the media at the Telugu Desam central office in Mangalagiri, Vijay Kumar alleged that former chief minister Y.S. Jagan Mohan Reddy and others were attempting to stall the project through petitions before the Andhra Pradesh High Court and the National Green Tribunal. He said both courts had declined to grant a stay.
The proposed data centre is expected to have a maximum capacity of 6.5 GW. Vijay Kumar said it would be supported by dedicated power infrastructure rather than the regular grid serving households in Visakhapatnam. He added that the facility would take between 2.5 and three years to reach full capacity.
Water use has been a central concern surrounding the project. Vijay Kumar said Visakhapatnam had been allocated 28.44 thousand million cubic feet from the Polavaram Left Canal, including 12 TMC ft earmarked exclusively for drinking water. He asserted that this drinking-water allocation would not be diverted to the data centres and that industrial supplies would be delivered through separate pipelines.
He further said the facilities would use closed-loop cooling and recycled greywater. According to Vijay Kumar, these measures are based on Jal Shakti ministry regulations, while the project has committed to becoming water-positive by 2030. The statement did not provide details of the proposed water balance, recycling capacity or the volume of water expected to be used during different stages of development.
Vijay Kumar also cited Rajya Sabha proceedings from August 6, during which Union minister Kirti Vardhan Singh was reported to have confirmed that the project would follow central protocols. A mandatory Water Balance Report would be required before operations begin, he said.
On environmental approvals, Vijay Kumar said the State Level Environment Impact Assessment Authority had cleared the project under the 2006 Environmental Impact Assessment norms on June 10. He said the project would generate direct and indirect employment while protecting natural resources. The next operational milestone identified in his remarks is the preparation of the mandatory Water Balance Report before the data centre begins operations.
