India activists demand moratorium on Google’s AI hub amid land, water concerns

VISAKHAPATNAM, ANDHRA PRADESH, INDIA, 11 OCTOBER 2026 —

Google’s $15 Billion AI Hub in Vizag Sparks Land Disputes, Water Fears as India Pushes Tech Ambitions

The project, championed by India as a linchpin of its digital transformation, has drawn sharp criticism from local activists who warn of strained resources, broken promises, and a model that prioritises corporate investment over community welfare. As global tech giants race to establish AI-driven infrastructure in emerging markets, Vizag’s struggle reflects broader tensions between economic ambition and sustainability—one that could set a precedent for India’s tech-driven future.

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The 600-acre site, equivalent to more than 340 football pitches, sits in a region already designated as a critical hub for India’s digital infrastructure. Vizag serves as a landing point for submarine internet cables connecting the country to Singapore, making it a strategic location for data storage and AI processing. Yet for residents like farmer Chandala Sadamma, 50, the transformation has left deep scars—both literal and emotional.

Sadamma received over $82,000 for her two-acre plot of mango and cashew trees, but the transaction left her disillusioned. “Some company came and, without showing any respect, they took the land and we accepted it,” she told AFP, her voice heavy with resentment.

“When I see the red-earth scars where my trees once stood, I feel like crying.” Her experience mirrors that of hundreds of families displaced as Vizag morphs into a tech megahub, with land prices surging by an average of more than 45% since the city unveiled its development plans, according to E. Ashok Kumar, head of the Confederation of Real Estate Developers’ Associations of India.

The Andhra Pradesh government has defended the acquisitions, citing financial compensation and the construction of new housing for displaced residents. However, activists argue that the benefits remain unevenly distributed. Gutta Rohith of the local Human Rights Forum, speaking at a protest attended by around 150 people, questioned the logic of locating such facilities in India. “The United States has a huge coast,” he said. “They can simply set it up there. Why here?”

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Google has framed the project as a “multi-decade commitment” with an obligation to be a “good neighbour,” according to Alexander Smith, the company’s head of infrastructure and energy for Asia-Pacific. The tech giant has pledged to use advanced air cooling technology to minimise water usage—a concern that has fueled opposition in other regions, including the United States, where data centres often draw heavily on local water supplies for server cooling.

Andhra Pradesh’s government has also announced plans for six new 1.2-gigawatt nuclear power plants to meet soaring energy demands, though residents remain skeptical.

Shopkeeper Gubbala Ramanamma, 57, stood beside a dry well in her village, illustrating the stark reality of Vizag’s water crisis. “They are saying that Google is being established for the education and employment opportunities of our children,” she said. “But we are already struggling with water scarcity.” Her fears are shared by environmental campaigner E.A.S. Sarma, a former senior government official who has called for an independent water audit.

“Civilisations have vanished because of water shortages,” he warned. “We cannot afford to repeat history.”

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The economic promises of the project are substantial. Google estimates its data centre will generate $688 million in local economic activity annually and support about 4,200 jobs during construction, with hundreds of specialist roles expected once operational in 2028. The Andhra Pradesh government has projected even broader impacts, claiming the facility could create 188,000 direct and indirect jobs.

Yet critics like Rohith argue that such high-capital industries do little to address the region’s need for mass employment. “We need labour-intensive industries, not facilities that employ only a handful of skilled workers,” he said.

Google is not the only tech giant betting big on Vizag. A joint venture between Reliance Industries, Brookfield, and Digital Realty is investing $11 billion in another AI data centre in the city, part of a broader $175 billion push announced by Andhra Pradesh Technology Minister Nara Lokesh in February.

Lokesh, who has vowed to execute these projects “at a pace the country has never seen,” has insisted that residential needs will always take priority over industrial development. “The water needs of our people will always come first,” he stated in a previous interview with AFP.

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The rush to build data centres in India reflects a global trend, with governments and corporations spending trillions on infrastructure to support AI and digital services. Yet the environmental and social costs are increasingly coming under scrutiny. In Finland, authorities recently ordered a halt to construction on two Google data centre sites pending mandatory environmental assessments.

Activists in Andhra Pradesh are now demanding a similar moratorium until independent evaluations are published, arguing that the rush to develop has outpaced proper oversight.

The stakes are particularly high for India, which generates nearly a fifth of the world’s digital data yet hosts only about 3% of global data-centre capacity. As the country positions itself as a leader in tech and AI, the Vizag project serves as a test case for balancing rapid industrialisation with the protection of natural resources and community rights.

For now, the protests continue, and the excavators keep digging—leaving behind a landscape of both opportunity and uncertainty.

Related: Google · Nara Lokesh