State expands data centre footprint but appoints panel to probe environmental cost

MUMBAI: The Maharashtra government has approved 12 new data centre projects across the state, taking the number of operational and proposed facilities to 32

MUMBAI: The Maharashtra government has approved 12 new data centre projects across the state, taking the number of operational and proposed facilities to 32. The 12 projects, for which letters of intent were recently issued, are largely concentrated in the Mumbai Metropolitan Region (MMR) except for one coming up in Pune IT hub Hinjewadi.

However, after concerns raised by environmental experts, local residents and legislators on the environmental impact of data centres, the government on Monday also constituted a committee headed by former Atomic Energy Commission chairperson Dr Anil Kakodkar to assess the sector’s impact on water, electricity, the environment and local communities. Data centres are resource-intensive in nature and require substantial amounts of electricity and water for computing operations and cooling.

Maharashtra, which is attracting substantial investments in the sector, has positioned itself as a major data centre hub. Chief minister Devendra Fadnavis has set a target of locating 60% of the country’s data centres in MMR.

Among the 12 recently approved projects, the largest, on a plot measuring 1,33,871 square metres, is by STT Global Data Centres India Private Limited in Ambernath. Another project, proposed by Rochak Systems Private Limited, will come up on 1,14,500 square metres at the Trans-Thane Creek Industrial Area in Navi Mumbai. The approvals include two data centre parks, one by Lodha Developers in Ambernath on 26,55,587 square metres and the other by Gigaplex Estate Private Limited in Airoli, Navi Mumbai on 1,13,031 square metres.

Data centres house powerful computer systems that store and process digital information and support applications ranging from cloud computing to artificial intelligence. Their expansion has sparked concerns globally over rising electricity demand, water consumption and the pressure they can place on local infrastructure. According to an estimate by the International Energy Agency, a 100-megawatt hyperscale data centre can consume around two million litres of water a day. In comparison, Mumbai’s domestic water consumption is approximately 135 litres per person per day.

The Kakodkar-led committee was constituted following concerns raised by MLAs during the recently concluded monsoon session. They flagged the potential strain that data centres place on existing water resources and infrastructure, along with rising temperatures, environmental impacts and consequences for local residents’ daily lives and access to basic amenities. In response, the state government assured the House that a committee of experts would undertake a comprehensive assessment of the impact of proposed data centre projects.

The panel has been given three months from the date of the government resolution to submit a final report containing policy recommendations based on objective, scientific and technical information. Its terms of reference include assessing the impact of data centres on water, energy, air quality, noise levels and local ecosystems; studying best practices in India and abroad; and recommending guidelines for energy-efficient, green and sustainable facilities. It will also examine water conservation, recycling and reuse, and alternative cooling technologies.

“The committee will conduct a scientific study of the impact of data centres on the environment, water, energy, air quality, noise levels and local ecosystems,” the government resolution (GR) states, while outlining its mandate to recommend measures for sustainable data centre development.

Beyond environmental safeguards, the panel will examine public misconceptions about data centres, develop public awareness guidelines for local residents and elected representatives, and recommend a standard operating procedure for such projects in the state. It will also suggest measures to promote local employment, skill development and corporate social responsibility initiatives.

The panel includes the additional chief secretary, energy department; principal secretaries from the water resources, industries, and environment and climate change departments; the chief executive officer of MIDC; the commissioner of industries; and the managing directors of the state’s electricity distribution and transmission companies.