AI data centres do not need environmental clearance, the Centre tells Parliament, while we will run out of water by 2030, as per another report.
^((Not AI-generated))
- AI Data Centres do not, per se, require Environmental Clearance (EC) under the Environmental Impact Assessment (EIA) Notification, 2006.
- Prior environmental clearance will be required for AI data centres if they are proposed as part of a building and construction project with a built-up area over 20,000 square metres, or a township and development project covering 50 hectares or more, or if it has a built-up area of 1,50,000 square metres or more.
- In plain words: clearance becomes mandatory when a data centre qualifies as a large building, construction or township project under the notification. Data centres are currently assessed through their construction footprint rather than as a distinct industry with environmental-clearance requirements tailored to their computing capacity, electricity demand or water consumption.
- Under these conditions, a clearance will be granted by the State Environmental Impact Assessment Authority.
- In Europe and the US, the primary hurdles are power shortages and carbon limits, forcing governments to tighten laws rather than loosen them, so these companies are looking for alternatives, and they're here now.
Let's talk about water and electricity now...
- As per a 2018 NITI Aayog (government body) report: If steps to improve water management were not taken in India, 40 per cent of India's population will have no access to drinking water by 2030 (considering population growth as a factor).
- Another report by a non-profit, WWF (World Wide Fund for Nature), shared a list of the top 100 cities around the world that will face severe water scarcity by 2050. 30 out of these 100 cities are in India.
- 75% of India's electricity comes from non-renewable sources, mainly coal. The data centres will heavily rely on this. Microsoft, for example, has committed $3.7 billion to build data centres, adding 660 MW of IT capacity in Telangana, equivalent to the annual electricity needs of about half a million European households.
- As per Data Centre Map, there are currently 305 listed Data centers in India, and India ranks 6th in Data centers by number as per a 2026 Statista report, after the US, UK, Germany, France and China.
- As per a 2025 report, India has 84 of the world's 100 most air-polluted cities.
- Although it's a temporary (year-long) factor, El Niño (developing aggressively) has already blessed us with lower rainfall and weaker winds this year. (Unrelated to the topic, but this will also trigger a surge in food prices, food inflation, as they say).
- As per a report by CREA earlier this year, weaker wind and hydropower output, combined with rising demand for air conditioning, could open a generation gap of nearly 18 TWh (terawatt-hour) over a period of one year to June 2027. For Nerds, 1 TWh = 1,000,000,000 Kilowatt-hours (kWh).
Where are we heading?
This is NOT the first time something like this has happened. Previously, soft drink companies had exploited India's groundwater for years and poisoned the land; they made big bucks breaking all the rules. In the end, they just pack their bags and leave. This is similar to what they did to other developing countries. "Coke runs India Dry" was the heading of a Guardian article from 20 years ago (attached in comments).
These so-called rules made by Governments are just mere guidelines. History is proof that the fines these companies have to pay (if there is a trial) are a mere slap on the wrist. It's more like a "fee to do illegal activities legally". Around the world, data centres are exploiting the water and environment of developing countries. It's our turn now....
Do we want development and better infra? YES! But at what cost?
^(If there are any inaccuracies, please point them out. All sources will be attached in the comments. Ciao!)
Posted Aug 13, 2026, 4:45 PM UTC