Andhra Pradesh is adopting a sustainability-focused approach for data centres operating within the state, including a requirement that they source a minimum of 70% of their energy from renewable options. IT Minister Nara Lokesh announced the requirement during a fireside chat hosted by the Public Affairs Forum of India on September 25, 2026.
The state government is building out digital infrastructure and positioning Visakhapatnam as a primary hub to attract large technology investments. Because data-intensive facilities require reliable electricity and environmental oversight, the administration is combining resource planning for power, water, and other requirements into a unified strategy.
Lokesh specified that the 70% renewable energy requirement encompasses solar power, wind power, pumped storage, and battery-based energy systems. The state aims to address environmental concerns while expanding its footprint in the technology sector.
Water Management and Infrastructure Plans
Alongside power regulations, the government is addressing water management issues connected to industrial growth. Data-intensive facilities typically require large quantities of water for cooling purposes, which has raised local resource concerns.
To support the Visakhapatnam data centre cluster, the state plans to utilize the Polavaram Left Bank Canal. Lokesh stated that 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.
Additionally, the state is providing incentives for data centre companies to set up desalination plants. According to Lokesh, one company is already in the process of establishing such a facility to meet its operational water needs.
