Google’s AI Hub Advances as Villagers Lose Land

Google has broken ground on a proposed 1-gigawatt data center in Visakhapatnam, where government officials say they have acquired more than 300 acres. The project affects hundreds of families, including people without formal land titles who may not qualify for compensation.

The $15 billion project also includes plans for an international subsea cable gateway. Google and state officials say the hub could create thousands of jobs and attract artificial intelligence, cloud and technology businesses. Residents near proposed construction sites say their concerns about land, water and funding haven't been answered.

Land and livelihoods

In Tarluvada, T. Aruna pointed from the roof of her two-story home toward a hillside where excavators work from dawn until dusk. Villagers once gathered firewood and harvested cashews there; now, it forms part of Google’s proposed campus. “I wish the data center had never come here,” she said. “We feel cheated and our land has been taken away.”

Residents said government surveyors arrived in early 2025 and told them they were updating land records. By August, officials had returned with a different message: the land had been acquired. Farmer Venkata Surya Narayana said villagers didn’t know what a data center was. “We protested, but officials threatened us with jail.” In February, villagers taking cattle to graze found security guards blocking their path.

Government officials said they acquired more than 300 acres. Hundreds of families were affected, and those without formal land titles may not qualify for compensation. V.S. Krishna, state general secretary of the Human Rights Forum, said the projects were unfolding with “utter secrecy” and “utter opacity.” He said the government had put no “meaningful, systematic, or comprehensive information in the public domain.”

Water, power and public subsidies

In Arilova, a neighborhood on Visakhapatnam’s northern edge, groundwater levels have fallen about 115 feet since last summer, according to government monitoring data. Officials attribute the decline to rapid development and rising extraction outpacing natural recharge. Accountant Palli Murli said residents need water infrastructure, “not a data center, which will gulp whatever is left.”

Andhra Pradesh is reportedly offering Google a 25% discount on water costs and a 25% discount on land for 10 years, along with state tax waivers, reduced power rates and other incentives. The Wall Street Journal valued the incentives at roughly $2.3 billion over 20 years. E.A.S. Sarma, a former federal secretary in India’s power ministry, asked, “Where is that money coming from? Will it come from taxpayers?” Government offices haven't answered his communications.

Data centers can consume large amounts of electricity. In Ireland, they accounted for 5% of metered electricity use a decade ago and 22% by 2024, more than all households combined. Sarma said India lacks a dedicated data center policy and that its regulatory framework has gaps, including no clear rules governing environmental impacts.

Promises and unanswered questions

Google says it conducted independent assessments covering grid stability, power supply, water risk, ecology and acoustics. Alexander Smith, who leads technical infrastructure communications for the Asia-Pacific region at Google, said the company’s investment carried an obligation to be a good neighbour. The watershed, grid and nearby communities “must be better off for our being here,” he said.

Google has promised advanced air-cooling technology to limit local water use and says it will work with local organizations to expand drinking-water access and support fishing communities. Its June “global water stewardship” commitment pledges to replenish more water than the company consumes at its sites by 2030. But the commitments provide no figures for the Visakhapatnam center’s expected water consumption, its sources or how much water stewardship programs will replenish.

Government officials have said the campuses will eventually draw water from the Polavaram Irrigation Project. The scheme has faced decades of delays, cost overruns and disputes over displacement, and much of it remains unfinished. Environmental groups question whether it can spare water for data centers, saying future supply is already earmarked for households, farms and existing industry. State officials didn't respond to a request for comment.

Google’s partnership with the Adani Group has also drawn scrutiny. Opposition politicians and civil society groups have alleged that the infrastructure conglomerate benefits from its longstanding ties to Prime Minister Narendra Modi. The Adani Group has denied preferential treatment and said it follows applicable laws in securing land and regulatory clearances; Google has made similar statements. Amazon, Microsoft and other companies are pursuing similar campuses across India, often with comparable incentives and gaps in disclosure.