Lokesh Allays Concerns Over Vizag Data Centres
Minister counters water concerns, says AI hub will drive green growth and jobs

Vijayawada: Electronics Minister Nara Lokesh on Wednesday said the state’s data centres initiative in Visakhapatnam has completed its target of attracting projects totalling 6.5GW and urged the people to ignore “misinformation” being spread about their impact on water and the environment.
He said Google’s announcement of its investment there had prompted several global IT companies to seek land in the city.
In a written reply to Nellimarla MLA Lokam Madhavi in the assembly, Lokesh urged the people not to believe in fake videos or politically motivated campaigns. Data centres, Lokesh said, are essential for building India’s sovereign artificial intelligence (AI) infrastructure.
“India cannot depend on others for its digital infrastructure,” he said, pointing to the growing volumes of data generated by AI-enabled smartphones, devices and applications.
The IT minister said the government’s objective was to create an integrated AI ecosystem covering advanced chips, power electronics, fibre and cable connectivity, cooling systems and other ancillary industries. He recalled opposition to computerisation when chief minister Chandrababu Naidu promoted IT in the 1990s, saying similar fears were now being created over data centres.
On water concerns, Lokesh said no water meant for residential areas would be diverted for the data centres. Additional water from the Polavaram project would be supplied through dedicated pipelines from the industrial allocation.
Nearly 3,000tmc of Godavari water flows into the Bay of Bengal annually, he said, adding that a portion was being brought to Visakhapatnam by gravity. Around 3tmc would be required for 6.5gw of data centre capacity under current technology.
The separate drinking-water system from Polavaram, he said, is expected to become operational within 18 months.
Lokesh said newer air-cooling technologies could further reduce water consumption. He also pointed out that a 1GW thermal power plant consumes nearly 10 times more water than a data centre of comparable capacity.
The minister said the employment impact would extend far beyond direct data-centre jobs, generating opportunities in cooling, power electronics, transformers, cables, fibre, logistics, warehousing, hospitality, retail, maintenance and real estate.
The cooling ecosystem emerging in Rayalaseema alone was expected to create about 20,000 jobs. A logistics company that signed an agreement with Google is expected to invest `1,000 crore in AP.
Data centres have been mandated to use at least 70 per cent green energy, with solar, wind and pumped-storage power being encouraged.
Lokesh said dedicated power arrangements had been facilitated and electricity tariffs would not be increased. Instead, charges had been reduced by 13 paise this year. A 100-mld desalination plant was also being established.
The state, he said, has achieved the 6.5GW data-centre target set by the CM, while infrastructure including power, transmission, fibre and cable landing facilities is being developed. Three cable landing stations are planned in Visakhapatnam.
Union minister Ashwini Vaishnaw had described Visakhapatnam as an “AI Patnam”, Lokesh said, adding that an American university was planning an AI-focused presence in the city. “Visakhapatnam was being developed as a global AI hub with a focus on sustainability, investment and employment across Andhra Pradesh.”

