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Environmental clearance is not mandatory for all data centers: Government
AI data centers don't automatically require environmental clearance

Environmental clearance is not mandatory for all data centers: Government

Aug 09, 2026
12:44 pm

What's the story

The Indian government has clarified that artificial intelligence (AI) data centers do not automatically require environmental clearance. The clarification was given by Minister of State for Environment Kirti Vardhan Singh in a written response to Rajya Sabha MP Sudha Murty on August 6. Singh said these centers are not exempt from the Environmental Impact Assessment Notification, 2006.

Clearance requirements

When is environmental clearance mandatory?

Singh further clarified that environmental clearance is mandatory only when a data center falls under the category of a large building, construction or township project as per the notification.

This applies to data centers with a built-up area over 20,000 square meters or those that are part of a township/area-development project covering at least 50 hectares, have a built-up area of at least 1.5 lakh square meters, or meet both conditions.

Assessment criteria

Data centers currently assessed on the basis of construction footprint

The government has said that data centers are currently assessed on the basis of their construction footprint, not as a separate industry with environmental-clearance requirements based on their computing capacity, electricity demand or water consumption.

This means that the environmental impact of these facilities is primarily evaluated through their physical size rather than their operational characteristics.

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Regulatory framework

Water use and discharge are regulated under these acts

The government has also clarified that water use and discharge during the construction and operation of data centers are regulated under the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981.

Compliance with these laws is monitored by state pollution control boards or pollution control committees.

Groundwater extraction for commercial/infrastructure projects is governed by guidelines issued by the Jal Shakti Ministry in September 2020.

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Efficiency recommendations

Bureau of Energy Efficiency's District Cooling Guidelines, 2023

The government has also pointed to the Bureau of Energy Efficiency's District Cooling Guidelines, 2023.

These guidelines recommend using treated water in cooling towers wherever possible and promote efficient cooling systems, alternative water sources, and conservation measures.

However, it's important to note that these are not standalone regulations specifically designed for AI data centers.

Public opposition

Google's $15 billion AI data center project faces protests

The government's clarification comes as Google's $15-billion AI data center project in Visakhapatnam faces protests and legal challenges over its potential impact on local water supplies and wildlife.

Activists have protested with placards saying "We cannot drink DATA."

Petitioners have also questioned the project's proximity to the Kambalakonda Wildlife Sanctuary, alleging that classifying data centers as building projects allows them to bypass more extensive environmental scrutiny and public consultation.

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