Mumbai: India's ambition to become a major global centre for artificial intelligence is facing growing resistance from residents living near new data centre developments. While the government and technology companies see these facilities as important for economic growth and digital innovation, local communities are raising concerns about the loss of green spaces, noise, water consumption and electricity demand.
A report published on Friday highlighted opposition to an Amazon data centre project near Mumbai, where residents say construction has changed the surroundings of their homes. The dispute reflects a wider challenge facing India as it expands its digital infrastructure while addressing environmental concerns and the needs of local communities.
Tushar Shetty, a 46 year old engineer living in Mumbai, described how greenery visible from his apartment was replaced by exposed red earth after trees were felled for the development. He said he would not have bought his apartment had he known about the project.
More than 1,000 residents living near the planned facility say the project proceeded without meaningful consultation. On September 8, hundreds of people, including elderly residents, gathered near the site to protest. Some called for the facility to be moved elsewhere, citing concerns about noise, water supplies, electricity demand and the quality of life in their neighbourhood.
Residents have also raised concerns about possible effects on property values. However, the available reporting does not establish independently measured losses in nearby property prices.
Amazon has defended the project, saying it will use water free cooling, have a dedicated electricity supply separate from nearby homes and introduce measures to reduce noise. The company also said it had planted more saplings than the number of trees removed. These assurances form part of Amazon's response to the concerns, although their effectiveness will need to be assessed through evidence about the facility's actual environmental impact.
The dispute has attracted political attention. Opposition legislator Aaditya Thackeray joined protests against the development in September and said his party would relocate the project if it returned to power.
The controversy comes as India attracts major investments from global technology companies seeking to expand their cloud computing and artificial intelligence operations. Data centres house the computer systems needed to store information, run online services and support the development and operation of advanced AI systems.
Prime Minister Narendra Modi's government has made digital technology and artificial intelligence important parts of its economic development strategy. India is seeking to strengthen its position in the global technology industry by expanding computing infrastructure, supporting research and attracting investment.
The government approved the IndiaAI Mission in March 2024 with a budget of 10,371.92 crore rupees. The programme aims to improve access to computing resources, support AI research and encourage the development of artificial intelligence capabilities within the country.
Official figures published in March 2026 showed that India's data centre capacity had increased from about 375 megawatts in 2020 to approximately 1,500 megawatts in 2025. The government has also projected that electricity demand from data centres could reach 13.56 gigawatts by 2031 to 2032.
The expansion raises questions about how facilities will obtain reliable electricity and manage their water requirements. India has about 4 per cent of the world's freshwater resources for 18 per cent of its population, making water management an important issue as data centre construction increases. Research cited in recent reporting also points to the possibility of rising water consumption by these facilities, although actual demand varies according to cooling technology and operating conditions.
Amazon has announced plans to invest 48 billion dollars in India through 2030, including more than 21 billion dollars for artificial intelligence and cloud infrastructure between 2026 and 2030. The investment programme covers the company's broader operations and infrastructure in the country. The figure should not be confused with the construction cost of the individual Mumbai facility.
The concerns in Mumbai are not isolated. In Andhra Pradesh, Google's proposed 15 billion dollar data centre development, involving the Adani Group, has faced environmental objections and legal challenges.
The project in the Visakhapatnam region has drawn attention to questions about land allocation, water supplies and the development's proximity to the Kambalakonda Wildlife Sanctuary. The Andhra Pradesh High Court has directed the state government to ensure that construction complies with applicable legal and environmental requirements. The court did not grant the petitioner's request to halt work at that stage.
Subsequent court proceedings have continued to examine the project. In October, the High Court allowed construction to continue at the developer's own risk and cost while environmental concerns remained under consideration. The development therefore remains subject to legal scrutiny, and the court's decision should not be interpreted as a final determination of all the environmental questions raised.
The state government has defended the project, while Google has said it would comply with applicable laws and use advanced cooling technology. The dispute highlights the importance of distinguishing between allegations made by campaigners, responses from companies and findings established through legal or environmental assessments.
India's data centre expansion forms part of a wider international trend as governments and technology companies invest in the infrastructure needed to support artificial intelligence. However, the experience of residents in Mumbai and the legal dispute in Andhra Pradesh show how these ambitions can come into conflict with local environmental concerns.
For communities living near proposed developments, the central questions concern transparency, consultation, access to reliable public services and the protection of their surroundings. For companies and government authorities, the challenge is to demonstrate that new facilities can operate without placing unreasonable pressure on local resources.
As India continues to expand its digital infrastructure, the balance between technological growth and community interests is likely to remain an important public issue. The outcome will depend not only on investment and construction but also on how effectively environmental concerns are addressed and how openly authorities and companies engage with affected residents.