Hyderabad is positioning itself as a major hub for artificial intelligence infrastructure, with data centres expanding rapidly on the city’s periphery. This rapid expansion, however, is raising concerns about the city's water availability.
According to The Hans India, the Telangana government is targeting 5 GW of capacity and investments of around $30 billion by 2029. This ambitious expansion will require significant water resources for cooling purposes in these data centres.
Currently, roughly 300 MW of data centre capacity is operational in Hyderabad. Furthermore, another 2 GW of capacity is already in the pipeline, indicating a substantial increase in future water demand.
Applications for a further 12 GW of capacity remain under scrutiny, as reported by The Hans India. If these applications are approved, the demand for water for data centres in Hyderabad could escalate considerably.
The Hans India suggests that Telangana can insist on the mandatory use of recycled water for cooling where feasible. This measure could help mitigate the pressure on the region's water resources.
For readers in Andhra Pradesh and Telangana, while this data centre expansion brings economic benefits to the region, it also highlights the critical challenges related to water resource management and sustainable development.