Andhra sets 70% renewable energy rule for data centres, addresses water concerns: Lokesh
The state is positioning Visakhapatnam as a major data-centre hub as it seeks to attract large technology investments and build out its digital infrastructure.
Andhra Pradesh is introducing a sustainability mandate for its burgeoning data center sector, with IT Minister Nara Lokesh announcing that at least 70% of the energy consumed by these facilities must derive from renewable sources. The state aims to make Visakhapatnam a major hub for data centers, aiming to draw substantial technological investment and bolster its digital infrastructure.
However, data centers are notoriously power-hungry and water-intensive, necessitating careful consideration of energy, water, and environmental sustainability when planning large-scale expansion. Lokesh emphasized that the state's strategy encompasses addressing the environmental impact of data center growth by simultaneously focusing on energy, water, and other resource needs.
The 70% renewable energy requirement encompasses sources like solar, wind, pumped storage, and battery-based energy. The state is actively developing a data center cluster in Visakhapatnam and plans to utilize the Polavaram Left Bank Canal to manage water requirements, channeling water that would otherwise flow into the Bay of Bengal towards the city for data center use.
The Polavaram project aims to optimize water use, with incentives being offered for data center companies to construct desalination plants, with one such facility already under construction. Lokesh highlighted that Andhra Pradesh is taking a comprehensive approach to data center development, addressing energy, water, and environmental considerations concurrently to attract and facilitate large-scale data center investments while simultaneously tackling sustainability challenges.
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