Visakhapatnam AI data centre construction permitted at developer's risk

The Andhra Pradesh High Court has issued interim orders regarding the construction of the proposed ₹1.5 lakh crore AI Hyperscale Data Centre Park in Visakhapatnam. A Division Bench ruled that the developer, Vizag Hyperscale Data Centre Park Limited, may proceed with construction at its own risk, but cannot claim rights or equity based on financial investments if the final outcome of a pending Public Interest Litigation (PIL) is unfavorable.

The PIL, filed by environmentalist Bolisetty Satyanarayana, challenges the project due to concerns over ecological impact, noting the facility is located near a wildlife sanctuary and involves land belonging to a temple. The petitioner argues the project requires mandatory central environmental clearance.

In response to environmental and resource concerns, Telugu Desam leader Neelayapalem Vijay Kumar defended the project, stating that industrial water supplies will use separate pipelines and that the centers will utilize closed-loop cooling and recycled greywater. He asserted that the project has been cleared by the State Level Environment Impact Assessment Authority and will not divert drinking water from the local population. Additionally, he noted that the 6.5-GW power requirement will be supported by dedicated infrastructure rather than the domestic grid.