Google AI Hub Raises Land, Water and Public-Cost Questions

Groundwater in Arilova has fallen about 115 feet since last summer, while Google begins work on a proposed 1-gigawatt data center in Visakhapatnam. Residents fear the $15 billion project will deepen water shortages, and villagers say officials acquired land for the campus without their understanding or consent.

Land and local consent

In Tarluvada, a village on the city’s outskirts, T. Aruna pointed from her home toward the hillside where excavators are working on the proposed campus site. Villagers once gathered firewood and harvested cashews there. “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 told residents they had acquired the land. Farmer Venkata Surya Narayana said, “We didn't even know what a data center was. We protested, but officials threatened us with jail.” Government officials said they acquired more than 300 acres, affecting hundreds of families, including people without formal land titles who may not qualify for compensation.

In February, villagers taking cattle to graze found security guards blocking their path. The dispute over land is unfolding alongside government and corporate plans that could redirect land and public resources toward a large technology project, while residents say they lack basic information about its effects.

V.S. Krishna, state general secretary of the Human Rights Forum, said the projects were proceeding with “utter secrecy” and “utter opacity.” He said the government had not released “any meaningful, systematic, or comprehensive information in the public domain.” State officials either couldn't be reached or declined requests for comment.

Water, power and public costs

Water shortages are a regular concern in Arilova. Government monitoring data shows groundwater levels have fallen sharply in several urban areas in recent years, as officials attribute the pace to rapid development and rising extraction that exceeds natural recharge. “We need infrastructure, which will help us with water, not a data center, which will gulp whatever is left,” said Palli Murli, an accountant.

Google says it will use advanced air-cooling technology to limit local water use, following an assessment that found “existing pressure on the local watershed.” The company hasn't provided figures for the center’s expected water consumption, its water sources, or the amount its stewardship programs will replenish. Its annual Environmental Report includes consumption data only for fully operational data centers.

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. “Where is that money coming from? Will it come from taxpayers?” asked E.A.S. Sarma, a former federal secretary in India's power ministry.

The technology push

Google says the project could help make Visakhapatnam a major artificial intelligence hub. At an AI summit in Delhi in February, chief executive Sundar Pichai described the city as “brimming with potential” and said Google was establishing a “full-stack AI hub.” Google and state officials say the project could create thousands of jobs and attract AI, cloud and technology businesses. Tarluvada’s village head, BRB Naidu, said the city could become “the focal point of the tech world.”

The Adani Group, led by billionaire Gautam Adani, is Google’s partner in the project. Opposition politicians and civil society groups have alleged that the company benefits from Adani’s 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.

Sarma said India lacks a dedicated data center policy and that “the regulatory framework is fragmented, with many gaps.” He also cited opposition to hyperscale centers in parts of the United States and Europe over electricity and water use. Amazon, Microsoft and other companies are pursuing similar campuses across India, often with comparable incentives and disclosure gaps. The disputes in Visakhapatnam now raise questions about who receives the land and subsidies, and what information local residents get before projects proceed.