India's efforts to expand its artificial intelligence (AI) infrastructure are facing growing opposition from residents concerned about the environmental impact of large-scale data centres, as technology companies including Amazon, Google and Microsoft increase investments across the country.
The developments come as Prime Minister Narendra Modi seeks to position India as a global hub for AI infrastructure and data processing. However, projects in Maharashtra and Andhra Pradesh have drawn objections over electricity consumption, water availability, noise and construction near residential neighbourhoods.
According to a Reuters report, residents in Thane, near Mumbai, have protested against an Amazon data centre project being developed as part of the company's planned $21 billion investment in India's AI infrastructure by 2030.
The proposed 54-acre facility has raised concerns among nearby residents about tree removal, potential pressure on local utilities and the impact of industrial infrastructure on residential areas.
On September 8, hundreds of residents gathered near the construction site demanding that the project be relocated. Protesters expressed concerns about noise pollution, electricity requirements and the potential effect on property values.
Amazon has maintained that the facility will not place additional pressure on residential water and electricity supplies. The company told Reuters that the project would use water-free cooling technology, a dedicated power supply and noise-reduction measures.
It also stated that more saplings had been planted than the number of trees removed during development.
Water availability remains a broader concern for India's expanding data centre industry. According to S&P Global estimates cited by Reuters, between 60% and 80% of Indian data centres could face high water stress during this decade.
Research firm Mordor Intelligence estimates that data centres consumed approximately 150 billion litres of water in India in 2025, with consumption projected to more than double by 2030.
The expansion is being supported by substantial investments from global technology companies. Microsoft has announced a four-year investment plan of $20.5 billion in India, with a significant portion directed towards AI data centre infrastructure.
Meanwhile, Google's planned $15 billion data centre project in Andhra Pradesh has also attracted objections from environmental groups. Concerns include potential effects on wildlife, electricity and water resources, alongside allegations involving land use.
Google and the Andhra Pradesh government have denied wrongdoing in connection with the project.
The opposition has also attracted political attention. In Maharashtra, opposition legislator Aaditya Thackeray joined residents protesting against Amazon's proposed facility and called for its relocation.
The central government has defended data centre development as essential to India's digital economy, highlighting improvements in energy and water efficiency.
The protests reflect the challenges surrounding India's AI infrastructure expansion as policymakers and technology companies pursue increased computing capacity while addressing concerns over environmental resources and residential development.
Reporting basis: Reuters, October 9, 2026. Investment figures, environmental estimates and responses from Amazon and Google are attributed to the relevant companies and research organisations.
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