Andhra Pradesh is adopting a sustainability-focused approach to its planned data-centre expansion, including a requirement that at least 70% of the energy used by data centres come from renewable sources, IT Minister Nara Lokesh said.

The state is positioning Visakhapatnam as a major data-centre hub as it seeks to attract large technology investments and build out its digital infrastructure. Data centres, however, are typically energy- and water-intensive facilities, making access to reliable power and water as well as environmental sustainability key considerations for large-scale expansion.

Speaking at a fireside chat organised by the Public Affairs Forum of India (PAFI) here, Lokesh said the state was addressing the environmental implications of data-centre growth by focusing on energy, water and other resource requirements together.

"The first thumb rule is that a minimum 70% of the energy used by data centres must come from renewable sources," Lokesh said, referring to sources including solar, wind, pumped storage and battery-based energy.

The state is developing a data-centre cluster in Visakhapatnam and is also planning to address its water requirements through the Polavaram Left Bank Canal, he said.

Lokesh said the Polavaram project would help utilise water that would otherwise flow into the Bay of Bengal, with supplies being moved towards Visakhapatnam to meet the requirements of data centres.

The state is also incentivising data-centre companies to establish desalination plants, Lokesh said, adding that one company is already setting up such a facility.

Data centres can require significant quantities of water for cooling, raising concerns about their impact on local water resources as the state seeks to attract large-scale investments in the sector.

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