AP IT Minister Lokesh rejects misinformation on Vizag data centres, assures environmental safeguards

Amaravati, Aug 19 (TNT): Andhra Pradesh IT and Electronics Minister Nara Lokesh on Tuesday rejected what he described as misinformation being spread about data centres in Visakhapatnam, asserting that the projects would be developed with adequate safeguards for water security and the environment.

Responding to a question from Nellimarla MLA Lokam Madhavi in the Assembly, Lokesh appealed to people of Visakhapatnam not to believe fake videos or misinformation regarding the proposed data centres.

He said data centres were essential to building India’s sovereign artificial intelligence (AI) infrastructure and could help transform Visakhapatnam into a major technology and AI hub.

Lokesh said the rapid growth of AI had increased the need for India to develop its own digital and AI infrastructure to store and process the large volumes of data being generated by AI-enabled devices and applications.

He said Google’s decision to establish a major data centre presence in Visakhapatnam had generated interest among other global technology companies, with several firms seeking land in the city.

The government’s objective was not limited to establishing data centres but to develop a wider AI ecosystem covering advanced chips, power electronics, fibre and cable connectivity, cooling systems and other supporting industries, he said.

Recalling opposition to computerisation and IT promotion in the 1990s, Lokesh said similar misconceptions had been created when Chief Minister N. Chandrababu Naidu promoted IT and computer education.

Lokesh assured the Assembly that residential water supplies in Visakhapatnam would not be diverted for data centres.

He said the water requirement of data centres would be met from incremental water being brought from the Polavaram project and from the allocation earmarked for industries. Dedicated pipelines would be used to supply water to the data centres, he said.

According to Lokesh, the Godavari sends nearly 3,000 TMC of water into the Bay of Bengal annually, and a portion of the water is being brought to Visakhapatnam through Polavaram by gravity.

He said the current technology would require around 3 TMC of water for 6.5 GW of data centre capacity. Drinking water for Visakhapatnam would be supplied separately through the Polavaram system, which was expected to become operational within 18 months.

Lokesh also said newer technologies were reducing water consumption in data centres. He cited air-cooling technology he had seen during a visit to an Intel data centre in Palo Alto.

He pointed out that a 1 GW thermal power project consumes nearly 10 times more water than a data centre of comparable capacity and questioned why similar concerns were not being raised about thermal power projects.

The Minister said the major employment impact of data centre investments would come from the wider ecosystem around them rather than only from direct employment at the facilities.

He said investments in data centres could attract advanced chip companies, AI firms, cooling technology manufacturers, power electronics companies and other ancillary industries to Visakhapatnam and other parts of Andhra Pradesh.

Cooling infrastructure alone could generate significant employment, as air-cooling systems require periodic upgrades. The emerging manufacturing ecosystem in Rayalaseema was expected to create around 20,000 jobs through the cooling ecosystem, he said.

The wider ecosystem would also generate demand for transformers, cables, fibre, power electronics, logistics and warehousing, creating employment opportunities in transportation, hospitality, retail, maintenance, services and commercial and residential real estate.

A logistics company that entered into an agreement with Google was expected to invest Rs 1,000 crore in Andhra Pradesh, Lokesh said.

Lokesh said the State had mandated that data centres use at least 70 per cent green energy, with solar, wind and pumped-storage power being encouraged.

He said the One Nation-One Grid system would enable renewable energy generated in Rayalaseema to be transmitted to other parts of the country, creating an opportunity to power the data centre ecosystem with clean energy.

The government had also provided a distribution licence to facilitate dedicated power arrangements for data centres, he said.

Lokesh said electricity tariffs would not be increased and claimed that the NDA government had reduced electricity charges by 13 paise this year.

He also said a 100 MLD desalination plant was being established by a company as part of efforts to strengthen water security for the data centre ecosystem.

Lokesh said the State had achieved its target of bringing up to 6.5 GW of data centre capacity to Visakhapatnam as directed by Chief Minister N. Chandrababu Naidu.

The government was simultaneously developing supporting infrastructure, including power generation and transmission, fibre connectivity and cable landing facilities.

Three cable landing stations were being developed in Visakhapatnam and would be connected to global networks, creating opportunities for IT companies, global capability centres (GCCs) and allied industries.

Several companies were also seeking land for transformer manufacturing and other power infrastructure, while power electronics manufacturing companies were investing in Rayalaseema, he said.

Union Minister Ashwini Vaishnaw had described Visakhapatnam as being on its way to becoming an “AI Patnam” during the Google foundation-laying ceremony, Lokesh said.

He also said an American university was planning to establish an AI-focused presence in Visakhapatnam, though its name could not be disclosed at present due to the terms of the agreement.

Lokesh reiterated that the government was committed to developing a sustainable AI and data centre ecosystem in Visakhapatnam while creating employment and investment opportunities across IT, manufacturing, logistics, real estate and other sectors.

“Visakhapatnam has our 100% commitment. We are bringing investments with a clear focus on sustainability, jobs and long-term economic growth,” he added.

TNT KM