Andhra Pradesh HC: Google-Adani Data Centre PIL Spurs Approval Probe

• The Andhra Pradesh High Court declined to halt construction of the $15 billion Google-Adani data centre in Visakhapatnam.
• The court, however, questioned the State government regarding the project's environmental clearance and its proposed water and electricity consumption.
• A Public Interest Litigation (PIL) challenged the project's approvals, citing alleged violations in environmental norms and concerns over resource use.
• The Andhra Pradesh government projects the 1-gigawatt facility to create nearly 2 lakh jobs and boost the state's economy.
• Environmental activists in Visakhapatnam have protested the data centre, highlighting concerns about its significant water and electricity demands.

Despite declining to issue a stay, the court's pointed inquiries have cast a significant spotlight on the regulatory approvals and resource demands of the Google-Adani Visakhapatnam project.

The Andhra Pradesh High Court has opted not to issue a stay on the construction of the proposed $15 billion Google-Adani data centre in Visakhapatnam. However, the court has initiated a rigorous questioning of the State government regarding the approvals granted for this significant project, signaling a close examination of its regulatory compliance.

The court's involvement stems from a Public Interest Litigation (PIL) that challenges the project's approvals and raises substantial concerns about its potential environmental impact. During the proceedings, the Andhra Pradesh High Court specifically sought clarification on the environmental clearance process and questioned the projected consumption of vast quantities of water and electricity by the facility.

Crucially, the court emphasized that environmental clearance is not a mere formality and "cannot be given a go-by." In response, the Andhra Pradesh government provided assurances to the high court, stating that all actions related to the data centre project are being undertaken in strict adherence to prescribed laws. Despite declining to issue a stay, the court's pointed inquiries have cast a significant spotlight on the regulatory approvals and resource demands of the Google-Adani Visakhapatnam project.

The PIL at the heart of the legal challenge alleges significant violations of established norms in the process of granting environmental clearance for the Google-Adani data centre. Beyond procedural concerns, the petition specifically scrutinizes the project's anticipated need for massive quantities of water and electricity, which are critical for its operation. The PIL also brought to light incentives amounting to approximately ₹22,000 crore that were made available for the data centre's development.

While the Andhra Pradesh High Court has not yet ordered a halt to the construction, the detailed questions posed during the hearing have undeniably placed the project's regulatory approvals and its substantial resource requirements under intense scrutiny. The court is scheduled to resume hearing the matter in the coming week, indicating ongoing judicial oversight into these crucial aspects of the Andhra Pradesh data centre approvals.

From the perspective of the Andhra Pradesh government, the Google-Adani data centre is heralded as a pivotal economic and employment-generating initiative for the state. Andhra Pradesh IT Minister Nara Lokesh previously stated that the $15 billion AI data centre project is expected to create nearly 2 lakh jobs, providing a substantial boost to the state's economy.

Speaking after the foundation-laying ceremony in Visakhapatnam on April 29, Lokesh highlighted that the proposed 1-gigawatt facility represents more than just an investment; it is an integral component of a broader technological ecosystem being developed across Andhra Pradesh. The state government is actively fostering complementary sectors around the data centre, including renewable energy, battery storage, server manufacturing, and power electronics. This comprehensive approach is projected to generate employment opportunities beyond direct data centre roles, extending into areas like artificial intelligence, cybersecurity, cloud operations, manufacturing, infrastructure services, and various ancillary industries.

However, the Google-Adani Visakhapatnam project has also faced considerable opposition from environmentalists within the city. In recent weeks, activists, including children, have participated in public marches to protest the development. Social media posts from these demonstrations show protesters carrying banners with messages such as "We cannot drink DATA" and depicting handcuffs painted on the Google logo, underscoring their deep concerns. This environmental opposition primarily centers on the project's significant consumption of water and electricity, issues that directly mirror the concerns raised before the Andhra Pradesh High Court through the PIL data centre environmental impact.

This ruling signals heightened judicial scrutiny on environmental clearances for large infrastructure projects in India, particularly regarding resource consumption. Lawyers and compliance officers should anticipate potential public interest litigation and ensure robust environmental impact assessments for similar developments, even if initial stays are refused.

Source: Reporting based on recent news updates.