AP Sets 70% Renewable Energy Mandate for Data Centres

Andhra Pradesh mandates data centres to source at least 70% of their energy from renewable sources while also promoting sustainable water solutions for its planned 6.5 GW data-centre capacity.

Andhra Pradesh will require data centres operating in the state to source at least 70% of their energy from renewable sources, as the government seeks to balance rapid digital infrastructure expansion with environmental sustainability.

State IT and Human Resources Development Minister Nara Lokesh announced the requirement while speaking at a fireside chat organised by the Public Affairs Forum of India (PAFI) in New Delhi. He said the state is taking an integrated approach to the energy, water and environmental requirements associated with large-scale data-centre development.

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The renewable energy requirement will cover sources such as solar and wind power, pumped-storage systems and battery-based energy solutions. The policy comes as Andhra Pradesh seeks to position Visakhapatnam as a major data-centre hub and attract large investments in digital infrastructure and artificial intelligence.

The state has already secured agreements covering its targeted 6.5 GW of data centre capacity, with projects moving towards execution, according to Lokesh. He said the government had completed the agreements required to meet the capacity target and that projects were being grounded.

Alongside energy consumption, the government is also focusing on the water requirements of data centres, which can be substantial because of cooling needs. Lokesh said Andhra Pradesh plans to use sustainable water sources and ensure that data centre projects do not reduce water availability for agriculture or cities.

Part of the planned water supply for Visakhapatnam data centres is expected to come through the Polavaram Left Bank Canal. Lokesh said the project could help utilise water that would otherwise flow into the Bay of Bengal and channel it towards Visakhapatnam.

The state is also encouraging data-centre operators to establish desalination plants. According to Lokesh, one company is already setting up such a facility, providing an additional source of water for data-centre operations.

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The focus on renewable energy and water management comes amid India's broader expansion of data-centre infrastructure. The Union government said in August 2026 that India's installed data-centre capacity had increased from 375 MW in 2020 to about 1,575 MW, with Andhra Pradesh among the states emerging as new investment destinations. National measures also cover energy efficiency, renewable-energy use, cooling efficiency, carbon emissions and water conservation.

Andhra Pradesh's approach combines renewable-energy sourcing with water management measures as it develops Visakhapatnam into a data-centre and AI infrastructure hub.