On a sweltering Tuesday in the Andhra Pradesh Assembly, Education, IT and Electronics Minister Nara Lokesh made one thing unmistakably clear: the data centres coming up in Visakhapatnam are not a corporate giveaway, nor a threat to the city’s residents, but a vital piece of India’s digital future. Responding to a pointed question from Nellimarla MLA Lokam Madhavi, Lokesh hit out at what he called a deliberate campaign of misinformation, saying some groups were stoking fear and confusion around the projects purely for political gains. He appealed directly to the people of Visakhapatnam, urging them not to fall for “fake videos or misinformation” that could derail a once-in-a-generation opportunity. His core argument was simple and urgent: as artificial intelligence explodes across smartphones, devices, and advanced applications, the world is generating enormous volumes of data every single day. That data needs to be stored, processed, and managed inside India, not in some distant foreign location. “Data centres are an essential part of the AI infrastructure that the country will need in the coming years,” Lokesh said, and he warned that allowing itself to be held back by misinformation would be a grave mistake. He reminded the Assembly that India needs its own sovereign digital and AI infrastructure, not just for convenience but for security, self-reliance, and long-term economic competitiveness. The minister also pointed to an encouraging signal: Google’s decision to build a major data centre presence in Visakhapatnam has already triggered interest from other global technology companies, with several now actively seeking land in the city. But his vision goes far beyond concrete buildings and humming servers. Lokesh stressed that the government’s objective is not merely to establish data centres, but to build a complete AI ecosystem around them—advanced chips, power electronics, fibre, cable connectivity, cooling systems, and a host of supporting industries. In a moment of historical reflection, he recalled the fierce opposition to computerisation in the 1990s, when Chief Minister N. Chandrababu Naidu pushed IT and computer education and faced similar misconceptions. “Had we retreated then, Hyderabad would not have reached the position it occupies today,” Lokesh observed, adding that the fears being spread about data centres today are no different from the misplaced anxieties of that era.
Perhaps the most emotional and reassuring part of Lokesh’s address concerned water, a sensitive issue in a city that has often worried about scarcity and environmental stress. The minister gave an unequivocal assurance: residential water supplies in Visakhapatnam will not be touched, diverted, or compromised in any way for the sake of data centres. He explained that the water required by these facilities will come entirely from incremental water being brought from the Polavaram project, specifically from the allocation earmarked for industries, and will be delivered through dedicated pipelines. “Water for data centres will not be diverted from the city’s existing water infrastructure. We will bring additional water from Polavaram and provide it through dedicated pipelines,” he said. To put the numbers in perspective, Lokesh noted that nearly 3,000 TMC of Godavari water flows into the Bay of Bengal every year, and a portion of that abundant resource is now being redirected to Visakhapatnam by gravity through the Polavaram project. Under current technology, he said, about 3 TMC of water would be needed to support 6.5 GW of data centre capacity—a manageable fraction of what the river offers. Meanwhile, drinking water for Visakhapatnam will be supplied separately, also by gravity from Polavaram, with the system expected to be operational within the next 18 months. Lokesh also sought to challenge the popular assumption that data centres are insatiable water guzzlers. Newer technologies, he pointed out, are steadily reducing water consumption. During a visit to an Intel data centre in Palo Alto, he had personally observed air-cooling technology being used instead of traditional water cooling, a sign of where the industry is heading. He then raised a pointed question that seemed aimed at critics who have focused only on data centres: a 1 GW thermal power project consumes nearly ten times more water than a data centre of comparable capacity, so why, he asked, are similar concerns not being raised about thermal power projects? To further strengthen water security, Lokesh revealed that a 100 MLD desalination plant is being established by a private company, adding yet another layer of resilience for the ecosystem.
On the question of jobs, Lokesh painted a much broader and more hopeful picture than the narrow narrative of a few hundred facility jobs. He acknowledged that direct employment inside data centres is relatively limited, but he insisted that the real employment impact lies in the wider ecosystem these investments create. The emergence of AI data centres in Visakhapatnam, he said, will attract advanced chip-related companies, cutting-edge AI firms, cooling technology manufacturers, power electronics companies, and a whole range of ancillary industries, not just to the city but across Andhra Pradesh. He highlighted cooling infrastructure as a surprisingly large job generator, explaining that air-cooling systems require periodic upgrades, maintenance, and specialised support. According to Lokesh, the emerging manufacturing ecosystem in Rayalaseema is expected to create around 20,000 jobs through the cooling ecosystem alone. The data centre boom will also generate enormous demand for transformers, cables, fibre, power electronics, logistics, and warehousing. Each of these sectors, in turn, creates work in transportation, hospitality, retail, maintenance, services, and both commercial and residential real estate. The ripple effect, in other words, is massive. To illustrate the economic momentum, Lokesh revealed that a logistics company which has entered into an agreement with Google is expected to invest ₹1,000 crore in Andhra Pradesh. This is not just about building large buildings full of servers, he seemed to say; it is about building an entirely new industrial and technological landscape around them. The minister’s vision ties together high-tech manufacturing, skilled services, construction, and local commerce, all of which will benefit ordinary families and young job seekers. His message was aimed at reassuring not only the business community but also the people of Visakhapatnam and the rest of the state that these projects are meant to create inclusive and lasting prosperity. Instead of viewing data centres as alienated structures consuming resources, Lokesh asked residents to see them as magnets for innovation, investment, and employment across multiple layers of the economy.
Energy and environmental sustainability formed another pillar of Lokesh’s response. He announced that the state government has mandated data centres to use at least 70% green energy, with solar, wind, and pumped-storage power being actively encouraged. This is a bold requirement, and one that aligns with India’s broader climate commitments while also addressing local environmental concerns. Lokesh explained how the One Nation-One Grid system has transformed the way renewable energy is shared across the country. Electricity generated in sunny and windy Rayalaseema can now be transmitted to other parts of India, and this same clean energy can be channeled to power the emerging data centre ecosystem in Visakhapatnam. The government, he said, has also provided a distribution licence to facilitate dedicated power arrangements for data centres, ensuring reliable supply without burdening ordinary consumers. Perhaps anticipating fears of rising electricity bills, Lokesh was emphatic: electricity tariffs will not be increased because of data centres. In fact, he pointed out, the current NDA government has actually reduced electricity charges this year, by 13 paise per unit, something he offered as proof of its consumer-friendly approach. This combination of green energy requirements, dedicated transmission arrangements, and tariff stability is designed to reassure both the public and potential investors. The minister’s argument was that data centres can coexist with environmental responsibility if they are planned properly, and that the government is willing to enforce strict standards to ensure that they do. By tying data centre power needs to renewable energy, Lokesh sought to transform the narrative from one of environmental harm to one of green industrialisation. He presented the data centre programme not as a burden on the state’s resources but as a catalyst for modernising its energy grid and expanding its renewable capacity, all while keeping electricity affordable for ordinary households and businesses.
Lokesh also took the opportunity to spell out Visakhapatnam’s growing stature as a global AI and technology hub, a transformation that he said has been years in the making. He revealed that the state has achieved its target of bringing up to 6.5 GW of data centre capacity to Visakhapatnam, a goal set by Chief Minister N. Chandrababu Naidu, and that the government is now simultaneously building the supporting infrastructure required for that capacity. This includes power generation, transmission lines, fibre connectivity, and cable landing infrastructure. Three cable landing stations are currently being developed in Visakhapatnam, and when complete they will connect the city directly to global networks, opening up enormous opportunities in IT, global capability centres, and allied industries. Lokesh noted that several companies are already seeking land for transformer manufacturing and other power infrastructure, while power electronics manufacturing companies are investing in Rayalaseema. He reminded the Assembly that Union Minister Ashwini Vaishnaw, during the Google foundation-laying ceremony, had described Visakhapatnam as being on its way to becoming an “AI Patnam.” This is not just a slogan, he suggested, but a concrete recognition of the city’s trajectory. In a tantalising revelation, Lokesh said an American university is planning to establish an AI-focused presence in Visakhapatnam, though he could not disclose the institution’s name at present due to the terms of the agreement. Such an addition would further cement the city’s reputation as a centre of learning, research, and innovation, not just a place where data is stored. With cable landing stations, data centre capacity, academic partnerships, and a growing manufacturing base, Visakhapatnam is being positioned as a complete digital ecosystem on the global map. The minister’s tone was confident and forward-looking, presenting these developments as the result of careful planning and strategic investment, not happenstance.
In the end, Lokesh’s address was as much about public trust as it was about policy. He acknowledged that data centres have become a target of fear and suspicion, but he insisted that the facts do not support the panic. The government, he said, remains fully committed to developing a sustainable AI and data centre ecosystem in Visakhapatnam while creating opportunities across Andhra Pradesh in IT, manufacturing, logistics, real estate, and many other sectors. “Visakhapatnam has our 100% commitment. We are bringing investments with a clear focus on sustainability, jobs and long-term economic growth,” he declared. He returned again to the theme of misinformation, warning that politically motivated rumours could cost the city and the state their place in an increasingly competitive global race. He appealed to residents to educate themselves, to question what they see online, and to understand the long-term value of the projects that are coming their way. The minister’s broader message was one of resilience and ambition: just as Hyderabad benefited from early bet on information technology, Visakhapatnam can now reap the rewards of an early bet on artificial intelligence. But that reward requires patience, awareness, and collective support. Lokesh’s speech was a vivid reminder that infrastructure projects are never just about concrete and steel, water and power. They are about the future a society chooses to embrace. By defending the data centres against what he called falsehoods, while also offering transparent details about water, energy, jobs, and environmental safeguards, he sought to bridge the gap between governmental ambition and public anxiety. The path forward, in his telling, is one of openness and opportunity, where Visakhapatnam can become a shining example of how Indian cities can host cutting-edge technology without sacrificing their resources or their people.