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AI Data Centers: Environmental Rules Get Clearer
11 Aug
Summary
- Union ministry states AI data centers don't always need prior environmental clearance.
- Clearance is mandatory for projects over 20,000sqm built-up area.
- Environmental groups seek mandatory assessment for data centers as industrial projects.

The Union environment ministry has stated that AI data centers do not automatically necessitate prior environmental clearance (EC). Such clearance is contingent upon the project's size and nature, becoming mandatory for those exceeding 20,000 square meters of built-up area or falling under township developments of 50 hectares or more.
This clarification is significant for Visakhapatnam, aiming to become a major data center hub. Environmental organizations have voiced concerns regarding the substantial water and electricity consumption, noise pollution, and other ecological impacts associated with these planned facilities.
Environmentalists advocate for data centers to be classified as industrial projects, requiring mandatory environmental impact assessments and public consultation. They argue the current framework treats them primarily as building projects, overlooking their significant resource demands and potential environmental degradation, especially near sensitive zones.
The ministry, however, notes that environmental parameters, including freshwater availability and water balance, are considered during the appraisal of building projects for EC. Additionally, water usage and discharge are regulated under existing Water and Air Pollution Acts, with state pollution control boards monitoring compliance.