Google's $15 billion Visakhapatnam AI hub faces local opposition over water, power and land

Google's planned AI hub in Visakhapatnam, the largest AI data center project it has announced outside the United States, is facing growing local opposition in India's Andhra Pradesh state. On October 10 and 11, 2026, AFP reported that activists are demanding a moratorium on new data centers across the state until independent environmental and social impact assessments are published. They cite water scarcity, land taken from farmers and the small number of permanent jobs. Google says the campus will use air cooling rather than water cooling and be operational in 2028.

This story is based on Google's original announcement, Google statements reported by AFP and Reuters, and reporting by DatacenterDynamics and The Business Standard, checked October 12, 2026.

The short version

• The project: about $15 billion from 2026 to 2030 for a "gigawatt-scale" AI hub in Visakhapatnam ("Vizag"), co-developed with AdaniConneX and Airtel. Google announced it on October 14, 2025.
• Status: ground was broken on April 28, 2026. Google told AFP the hub will be operational in 2028.
• The opposition: residents and groups, including the Human Rights Forum, say the region can't spare the water, and want a statewide moratorium on new data centers until independent assessments are done.
• Google's response: air cooling at the site, full funding of required power upgrades, and a "multi-decade commitment" to be "a good neighbour."
• In court: a public interest case in the Andhra Pradesh High Court and three cases before India's environmental court, according to Reuters in August.

What is Google building in Visakhapatnam?

Google announced the hub in New Delhi on October 14, 2025. According to Google's release, it will invest approximately $15 billion over five years (2026–2030), its largest investment in India to date, for gigawatt-scale compute and a new international subsea gateway in Visakhapatnam. Google said it would work with local partners on transmission lines, clean energy and storage in the state. Google Cloud CEO Thomas Kurian called it "a landmark investment in India's digital future." AdaniConneX and Airtel are named as co-developers.

Construction is under way. DatacenterDynamics reported that the groundbreaking took place on April 28, 2026, at Tarluvada, Visakhapatnam, with AdaniConneX and Nxtra by Airtel leading construction of the buildings. DCD also reported land parcels at three sites totaling roughly 600 acres, and a commissioning target of July 2028. AFP gives the same overall size, about 600 acres.

Google doesn't disclose the site's power capacity in megawatts, AFP noted. The hub is part of the wider race to build gigawatt-class AI campuses that our explainer on the gigawatt datacenter race tracks, and much of what goes inside will be accelerators like those in our Nvidia Vera Rubin coverage.

What are residents and activists objecting to?

Water. Reuters reported on August 6, 2026, that the city receives 410 million liters of water a day against a requirement of 480 million, and that rationing is common in a city of about 2.5 million. A shopkeeper standing beside a dry well told AFP, "we are already struggling with water scarcity." Former senior government official and environmental campaigner E.A.S. Sarma has called for an independent water audit, according to AFP.

Land. AFP spoke to a farmer who was paid more than $82,000 for a two-acre plot of mango and cashew trees. She said the company "took the land and we accepted it." The Business Standard reported in June that some of the land had been allotted to Dalit families in the 1970s. The Andhra Pradesh government says it is paying compensation and building new housing for displaced residents, AFP reports.

Jobs and power. "We need mass employment and labour-intensive industries, not high-capital industries," Gutta Rohith of the Human Rights Forum told AFP. Critics also say new data centers add demand to a grid that still relies heavily on fossil fuels.

Wildlife. Reuters reported in August that the Kambalakonda Wildlife Sanctuary is about 860 meters away; the state says that's farther than the law requires.

Activists have marched with banners reading "We cannot drink DATA," according to Reuters and AFP.

What does Google say?

Google's head of infrastructure and energy for Asia-Pacific, Alexander Smith, told AFP the hub is a "multi-decade commitment" and that "the watershed, the grid and the communities around our facilities must be better off for our being here." According to AFP's reporting of Google's statements:

• Cooling: a Google water assessment found pressure on the local watershed, so Google chose "advanced" air cooling instead of water cooling. Google told Reuters in August that air cooling is meant "to protect vital local water resources."
• Power: Google says it "fully funds the cost of required power infrastructure upgrades," plans clean energy projects in the area, and would build more power or not build at all where supply is insufficient.
• Jobs: about 4,200 construction workers a year over a typical three-to-five-year build, then "hundreds" of specialist roles once operational in 2028, plus $688 million a year in local economic activity. These are Google's estimates.

What does the state government say?

Andhra Pradesh's technology minister, Nara Lokesh, told AFP that "residential requirements will always be prioritised over data centres" and that "the water needs of our people will always come first." Reuters reported in August that the state says no rural or residential water will go to the new data centers and the nearby reservoir won't be used. It called activists' concerns "incorrect and misleading" but said it would provide "factual clarifications and suitable redressal" if claims proved legitimate. The state expects 188,000 direct and indirect jobs, per AFP.

Is the project being challenged in court?

Yes, according to Reuters' August 6 report:

• Jal Biradari filed a public interest case in the Andhra Pradesh High Court arguing that the project will strain a nearby reservoir. The court asked the government to respond.
• The Human Rights Forum filed three cases before India's environmental court seeking a halt, arguing the state didn't properly assess drawing water from a rural drinking-water scheme.

We found no final ruling in either forum as of October 13, 2026; the High Court case is still being heard. AFP notes the pushback isn't unique to India: a Finnish authority halted work at two Google sites pending environmental assessments.

Why it matters

Visakhapatnam is a test of whether hyperscalers can site gigawatt AI campuses in water-stressed regions with a social license, not just a state government's backing. Google's air-cooling commitment answers the most direct complaint. It doesn't settle the power question. Google hasn't published the site's power draw, and critics tie new demand to a grid still heavily reliant on fossil fuels. Much of the demand behind these campuses comes from enterprise AI products like the Gemini agent Google announced on October 8. The outcome of the court cases, and whether Andhra Pradesh agrees to independent water and environmental audits, will matter well beyond this one site.

What's confirmed, reported and uncertain

• Confirmed (Google): the October 14, 2025 announcement; about $15 billion for 2026–2030; gigawatt-scale; AdaniConneX and Airtel as co-developers; the subsea gateway.
• Reported (Google statements via AFP and Reuters): air cooling; operational in 2028; funding of power upgrades; job and economic estimates.
• Reported (AFP, Reuters, DCD, The Business Standard): the April 28 groundbreaking; about 600 acres; water figures; the moratorium demand; the court cases; land and compensation accounts; state statements.
• Uncertain: the site's power capacity in megawatts and its energy sources; the outcome of the court cases; whether independent audits will happen.