The wave of resistance against AI data centers has spread to India, and Alphabet Inc. Class C (GOOGL.US) $15 billion project is caught in an environmental crisis.

In Visakhapatnam, Andhra Pradesh in southern India, a hillside has been flattened into layers of red soil steps, and excavators are roaring on the exposed ground day and nightthis is the construction site of Alphabet Inc. Class C's (GOOGL.US) "largest ever" investment project in India, with a $15 billion AI data center rising rapidly through the Hub Group, Inc. Class A. However, alongside the progress of the project, the voice of opposition from environmentalists is growing louder. From street protests declaring "We cant drink data," to public interest litigation in the Andhra Pradesh High Court, and independent cases in Indias National Green Tribunalthis mega-scale data center, with a planned capacity of 2.5 gigawatts (GW), spanning the Ramabilly, Thallurwada, and Adavivaram areas and expected to create 188,000 jobs, is facing an unprecedented "legitimacy crisis." The "Red Terraces" under a Gigawatt Ambition In Thallurwada, on the outskirts of Visakhapatnam, the construction site is bustling. The hillside has been leveled, and the exposed red earth has been shaped into terraced steps, with excavators still operating on the bare ground. This is the core of Alphabet Inc. Class Cs ambitious $15 billion investment in the next five yearsan AI data center park with a planned capacity of approximately 2.5 gigawatts, spanning the three plots of Rambilli, Thallurwada, and Adavivaram. This is Alphabet Inc. Class Cs largest investment in India and its most expensive AI project outside the United States. The project is being pushed forward in collaboration with Indian billionaire Gautam Adani's group, with Bharti Telecom providing connectivity support. Alphabet Inc. Class C plans to complete this grand layout between 2026 and 2030, with the first phase of the 1-gigawatt computing power data center expected to be operational by September 2028. The Andhra Pradesh government anticipates that the project will create up to 188,000 jobs. However, even as the noise of construction continues, the wave of opposition from environmentalists has surged from all directions. "We cant drink data": An Outcry Against the Water Crisis The current water supply situation in Visakhapatnam is the fuse for this controversy. Government data shows that this city, with a population of 2.5 million, supplies about 410 million liters of water daily, but the actual demand reaches as high as 480 million liters. Water rationing has become the norm locally. Activists believe that Alphabet Inc. Class C's data center will further exacerbate the already tense water supply situation. Raja Rama Mohan Roy, the founder of the nonprofit Green Visakha, presented the alarming data on water supply and demand in Visakhapatnam at a public rally, stating bluntly, "Development should not come at the expense of people's livelihoods." The activist organization Jal Biradari filed public interest litigation in the Andhra Pradesh High Court, alleging that the project would put pressure on the nearby Mudassarlova reservoir, thus worsening the water supply situation. On the streets of Andhra Pradesh, protests have spread from professional environmental organizations to ordinary citizens, including children. At a rally on Sunday, activists outlined plans for door-to-door campaigning and beach protests in the coming days. On social media, protesters held banners reading "We cant drink data," with handcuffs drawn over the Alphabet Inc. Class C logo. The Last 860 Meters for Wildlife: Ecological Concerns for Leopards and Pangolins Beyond the water resource controversy, the ecological impact of the projects location has also drawn significant attention. The construction site is just 860 meters from the Kambalakonda Wildlife Sanctuaryhome to leopards and pangolins. The public interest litigation accepted by the Andhra Pradesh High Court points out that the vibrations and noise generated by large-scale construction could disrupt the wildlife within the sanctuary. The Human Rights Forum has filed three lawsuits in Indias National Green Tribunal, demanding a halt to the project's construction. The organization accused that the project passed through the approval process in just nine days without sufficient public hearings, and satellite images indicated that construction activities had already commenced before the formal environmental permits were granted. Responses and Struggles from All Sides In the face of the rising tide of opposition, various parties are engaging in a complex struggle. The Andhra Pradesh government denies that the project was rushed through, stating that activists' concerns are "inaccurate and misleading." However, the government also expressed a willingness to listen: "Such protests are their democratic right. If any of their claims prove true, the government promises to communicate, clarify the facts, and provide appropriate remedies." Regarding the distance between the construction site and the sanctuary, the state government claimed it exceeds the legally mandated minimum requirement. Local legislator Sribharat has also publicly stated that the data center will not lead to a water crisis or power shortage. Alphabet Inc. Class C responded that project construction will comply with all applicable laws and employ "advanced air-cooling technology to protect essential local water resources." Concerning noise issues, Alphabet Inc. Class C pledged to implement soundproofing measures to ensure a quiet environment that does not disturb the neighbors. The company also stated that the data center will use water sources independent of local drinking supplies and has undergone environmental audits. However, Green Visakha expressed concerns over the governments promise to secure 20 years of water supply for the project. Given that residents already face water rationing, this promise has elicited fierce skepticism. Paytm founder Vijay Shekhar Sharma criticized the protests, calling them anti-AI actions. A Microcosm of Global Data Center Protests in India Alphabet Inc. Class Cs predicament in Visakhapatnam is not an isolated case. Globally, the rapid expansion of data centers is facing increasingly intense community backlash. In July of this year, protesters in 42 states in the U.S. held 142 events expressing similar concerns. In India alone, residents in Andhra Pradesh and Maharashtra have also taken to the streets recently to oppose mega-scale data center projects in their respective states. Water resources are becoming a core risk factor for AI infrastructure. The water cooling requirements of a data center can reach millions of gallons. Against the backdrop of worsening climate change and strained global water resources, risk assessments for site selection of data centers must prioritize water availability as equally important to electricity costs and network latency. The cost of obtaining a Social License to Operate is rapidly increasing. Even if a project receives government approval, failure to gain the acceptance of local communities can lead to legal challenges, construction delays, and reputational damage, potentially eating into investment returns. Critics refer to this phenomenon as "digital colonialism"developing countries provide land, water, and power to global tech giants while bearing the environmental costs. The Andhra Pradesh High Court will hear this case again on August 24, and Indias National Green Tribunal is also facing three lawsuits. The outcomes of these legal proceedings may set important precedents for the review mechanisms of future large-scale data center projects in India. Thus, emerging markets are not "regulatory lowlands." The involvement of Indias National Green Tribunal indicates that even in markets perceived as friendly to foreign investment, the enforcement of environmental rule of law should not be underestimated. In the rising tide of global environmental consciousness, any attempts to bypass environmental assessments through a "fast track" could become litigation traps in the future.