AI · October 20, 2026
Data center expansion in India strains local water supplies
Residents in the Greater Noida region of India are experiencing repeated water outages while new data centers continue to be constructed in their vicinity. More than 7,000 people in this area reported these interruptions during the current month. The state of Uttar Pradesh is actively encouraging the development of additional data centers while promising continuous water supply to specific industrial zones.
Water scarcity is a persistent issue in areas where data centers are being built. In Khoda, approximately 45,000 households lacked access to running water as of mid-2026. Families in these communities rely on underground pumps or purchase water for their daily needs. Residents indicated that wells must be dug to depths of 305 or 366 meters to locate water in certain neighborhoods. Similar problems were reported in various parts of Noida, where inhabitants described low water pressure, service interruptions, and contaminated water. In one residential complex housing 350 families, the water was reported to be yellowish, foul-smelling, and containing worms.
The situation is expected to worsen due to scheduled maintenance. The annual closure of the upper Ganges canal for repairs, planned from October 21 to November 25, may disrupt water supply for nearly 2 million people in certain areas. This maintenance period coincides with a time of high tension regarding water resources as data centers proliferate across the region.
Uttar Pradesh aims to transform into a major digital hub. The state targets an additional 2,000 megawatts of capacity for data centers and expects investments of 2,000 billion rupees, which is approximately 18.7 billion euros. Seven projects have already come online since the beginning of the year. Local authorities are providing land and tax incentives, along with guaranteed water access, for these facilities. Data centers house thousands of servers that generate significant heat, requiring water for cooling equipment. While some installations use air or closed circuits to limit water extraction, these facilities consume a valuable resource.
The data center sector in India consumes approximately 150 billion liters of water annually. This consumption is projected to reach nearly 359 billion liters by 2030. More than half of these facilities are located in regions where water resources are under significant pressure. The Indian data center market is expected to be four times larger by 2029, driven by investments exceeding 50 billion dollars from companies such as Amazon, Google, and Microsoft. India granted a tax exemption to foreign companies providing hosted online computing services from data centers on its territory in early 2026. This exemption is scheduled to remain in effect until 2047 to attract more capital.
In Visakhapatnam, Google is preparing a project valued at 15 billion dollars. The city has a daily water supply of approximately 410 million liters, while demand reaches 480 million liters. Local associations have taken legal action due to concerns about excessive pressure on water and natural spaces. Google stated that its data center will primarily use air cooling. NITI Aayog, which advises the Indian government on public policies, proposed that water and electricity availability be considered in the review of new data centers. It also requested that companies prove local networks can support their needs. India aims to become one of the world's largest artificial intelligence hubs, a goal that may come at the expense of its population, where drinking water remains a luxury in several cities.