India’s ambition to become a major hub for artificial intelligence infrastructure is meeting growing resistance from communities concerned about the environmental and social costs of large data centres.
In Mumbai, engineer Tushar Shetty says the greenery outside his 21st-floor apartment has been replaced by cleared land for an Amazon data centre. The project is part of the company’s planned $21 billion investment in India’s AI infrastructure by 2030. “I would not have bought the house if I had known,” said Shetty, 46, who purchased his home 5 months ago.
The protests reflect concerns seen in parts of the US, the Netherlands and Ireland, where residents have challenged data centres over noise, electricity use, water shortages and industrial development near homes.
India is pursuing infrastructure investment to support its AI ambitions, even as it trails the US and China in developing leading AI models. However, resource constraints are raising questions about the strategy. India has 4% of the world’s freshwater for 18% of its population. S&P Global estimates that 60%–80% of Indian data centres could face high water stress this decade. Data centres used about 150 billion litres of water in 2025, with consumption projected to more than double by 2030.
Mumbai project sparks local opposition
More than 1,000 residents near Amazon’s planned 54-acre facility say they were not properly consulted. On September 8, hundreds gathered near the site with placards reading “Data centres are energy vampires”. “If the data centre stops, we will stay … If it goes ahead, we will move,” said resident Vasudha Shetty, 62.
Amazon and local authorities say the project will use dedicated water and power supplies. Amazon also cited water-free cooling, noise controls and the planting of more saplings than the number of trees removed. The company is preparing community outreach plans, while residents continue to demand that the facility be relocated.
In Virginia, Amazon paused a 2024 proposal for 3 data centres after concerns about noise and proximity to homes. Sify Infinit Spaces CEO Sharad Agarwal said, “I will never set up a data centre in a residential area,” citing the need for reliable power and water.
Microsoft has announced a 4-year, $20.5 billion investment plan for India, largely for AI data centres.
Disputes spread beyond Mumbai
In Andhra Pradesh, environmentalists oppose Google’s $15 billion data centre project over potential risks to wildlife, water and power supplies. They also allege temple land was used without permission. Google and the state deny wrongdoing.
Mumbai protests have drawn opposition politician Aaditya Thackeray, who said his party would relocate Amazon’s project if it returned to power. Property broker Atul Jadhav said concerns about views and property values may be affecting nearby resale prices. “We will come out on the roads and do whatever it takes to stop it,” said 68-year-old resident Vidya Kadam.
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