Andhra Pradesh Plans 70% Renewable Energy Rule for Data Centres in Visakhapatnam

Andhra Pradesh plans to require data centres to source at least 70% of energy from renewable sources as Visakhapatnam develops into a major data-centre hub.

By Samarjit Kaur

on September 29, 2026

Andhra Pradesh is planning to require data centres in the state to source at least 70% of their energy from renewable sources as it prepares to build a major data-centre cluster in Visakhapatnam.

IT Minister Nara Lokesh said the state is taking an integrated approach to the power, water and other resource needs linked to the expansion of data-centre infrastructure. He made the remarks at a fireside chat organised by the Public Affairs Forum of India in New Delhi.

Also Read: Vizag Data Centres Won’t Affect City’s Water Supply, Says Nara Lokesh

Andhra Pradesh Sets 70% Renewable Energy Target for Data Centres

Under the planned approach, data centres must use at least 70% renewable energy. The proposed mix could include solar and wind power, along with pumped storage and battery-based energy.

Andhra Pradesh is positioning Visakhapatnam as a major data-centre hub as it seeks to attract large technology investments and expand its digital infrastructure.

The focus on renewable energy comes as data centres have high electricity requirements. The state is therefore looking to address their energy needs alongside the environmental requirements associated with large-scale facilities.

Also Read: India’s Electronics Exports to China Surge 40%: AI, Data Centres Drive ‘Made in India’ Push

Polavaram Water Supply and Desalination Plans

Water availability is another part of the state’s data-centre strategy. Lokesh said the Polavaram Left Bank Canal would help supply water towards Visakhapatnam for data-centre requirements.

According to the minister, the Polavaram project would divert water that would otherwise flow into the Bay of Bengal and redirect it to Visakhapatnam.

The state is also offering incentives to data-centre companies to establish desalination plants. One company has already begun setting up such a facility.

Data centres can require large quantities of water for cooling, making reliable water supplies an important consideration alongside power availability when planning large clusters.

For Andhra Pradesh, the immediate focus is on building data-centre capacity while planning for the electricity and water resources these facilities require. The 70% renewable-energy requirement and measures around water supply and desalination form part of the state’s wider approach to supporting data-centre investment while addressing resource demands.

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