Google faces backlash over $15B AI data center in India
What's the story
Google is facing criticism over its plan to build a massive artificial intelligence (AI) data center in Visakhapatnam, India. The $15 billion facility will be the tech giant's largest outside the US. But locals are worried about its potential impact on water and power resources, environmental degradation, and job creation.
Local fears
Locals fear data center will deplete resources
The construction of the data center has already begun, with excavators clearing forest and farmland on the southeast coast.
Many residents fear that this facility, along with other large tech sites in Vizag, will deplete water and power resources.
They also worry about its environmental impact and the number of jobs it would create.
Corporate commitment
Google promises to be 'good neighbour'
Alexander Smith, Google's head of infrastructure and energy for Asia-Pacific, said the "AI Hub investment is a multi-decade commitment" with an "obligation to be a good neighbor."
He added that the watershed, grid, and communities around their facilities must be better off because of their presence.
The Andhra Pradesh government has also promised new housing for those who lived on the site before its development.
Call for pause
Activists demand a halt to new data centers
Activists in Andhra Pradesh have called for a halt to new data centers across the state until independent environmental and social impact assessments are made public.
The opposition to data centers is often centered around their use of local water resources to cool hot servers down.
Google has said it will use "advanced" air cooling technology at its India hub, while the state plans six nuclear power plants as energy demand increases.
Financial forecast
Economic benefits may not reach everyone equally
Google has projected its data center will generate $688 million in local economic activity annually and create some 4,200 construction jobs.
Hundreds of specialist jobs are expected once the facility becomes operational in 2028.
The Andhra Pradesh government also expects "188,000 direct and indirect jobs to be generated."
However, critics argue these economic benefits may not reach everyone equally.
Real estate impact
Land prices have increased by more than 45%
Since the city's development plans were announced, land prices have increased by an average of "more than 45%," said E. Ashok Kumar, Visakhapatnam head of the Confederation of Real Estate Developers's Associations of India.
Despite its digital data generation accounting for nearly one-fifth of global output, India has only about three percent of global data-center capacity.
Andhra Pradesh Technology Minister Nara Lokesh has spoken about investment agreements worth $175 billion involving 760 projects.