Visakhapatnam data centre expansion to require ₹23,000 crore water infrastructure

A proposal submitted to Andhra Pradesh's Chief Minister outlines an ambitious water infrastructure project aimed at sustaining the rapid growth of data centres in Visakhapatnam, one of India's emerging technology hubs. The scheme carries an estimated cost of ₹23,000 crore and would significantly expand the region's water storage capacity.

The proposal seeks a 10-15 thousand million cubic feet (tmc ft) expansion of the existing Yeleru reservoir, alongside the construction of five new balancing reservoirs, each with a capacity of 5 tmc ft. These facilities would collectively span up to 12,500 acres and would be fed through the Polavaram Left Main Canal, leveraging water resources from the larger Polavaram irrigation project.

Data centres are water-intensive operations, requiring substantial quantities for cooling systems and other operational needs. As Visakhapatnam positions itself as a major data centre destination, officials have recognized that existing water infrastructure may prove insufficient to support projected industrial growth in the coming years.

The proposal represents a significant commitment of public resources to facilitate private sector expansion. The scale of the project underscores the tension between rapid industrialization and resource management in coastal Andhra Pradesh, where water availability remains a critical constraint for large-scale development initiatives.