The Dark Side of Data Centres: Displacement and Environmental Risks in India
Silicon Valley is pouring billions into building data centres in India, often with little regard for the environmental and health risks posed to vulnerable communities. Prime Minister Narendra Modi is positioning the country as a leading hub for artificial intelligence (AI), with the AI Impact Summit in New Delhi in February 2026 drawing over 500,000 attendees. Modi’s pitch was clear: “Design and develop in India. Deliver to the world. Deliver to humanity.”
Microsoft, Amazon, Google, and Meta have pledged billions to build data centres in the country. OpenAI announced a joint venture with Tata Group to develop more data centres and train workers in AI. Adani Group pledged $100 billion to develop hyperscale data centres powered by renewable energy. These investments are being rewarded with deep concessions on land and electricity, and tax breaks that allow foreign companies to defer taxes until 2047.
However, the unbridled growth of data centres comes at a high cost, particularly for India’s most vulnerable communities. Low-income Dalit families are being evicted or pressured to sell their land as data centres expand. The government has postponed plans to retire ageing power plants and approved dozens of new coal-fired plants to meet the demand from data centres. These facilities are guaranteed uninterrupted power and water supply, even as poor communities nearby struggle to access basic resources.
While each proposed data centre must undergo an environmental review, experts say these assessments are often rubber-stamped, with no cumulative assessment of their environmental footprint. The lack of comprehensive evaluation means the combined pressure on water, power, land, and local ecosystems is not accounted for.
Real estate developers across India are cashing in on the fastest-growing commercial real estate segment by diverting large tracts of land to build data centres. Developers receive generous government subsidies and incentives, such as fast-tracked approvals, flexible zoning rules, and exemptions from building affordable housing.
Nowhere is this more apparent than in Mumbai, one of the world’s most unaffordable cities, where half the population lives in informal settlements, or slums. Data centres are adding to the fierce competition for land, exacerbating the affordable housing crisis. In June 2024, bulldozers rolled into Jai Bhim Nagar, a settlement of around 650 mostly Dalit households. Shrimati Chauhan, who has lived there for over 30 years, was evicted along with her family. The Hiranandani Group, the developer, plans to construct a new data centre inside the township.
Chauhan was beaten, arrested, and jailed for several days. Her son, Shiv Sagar, was injured and now walks with a limp. News reports show that more than 200 residents were charged for pelting stones at authorities, and at least 57 people were arrested. In the days following the demolition, 28 residents filed a criminal petition with the Bombay High Court, challenging their eviction. The case is ongoing.
Google announced its largest data centre outside the United States—a massive 1 gigawatt (GW) campus near Visakhapatnam. Tarluvada, a village known for its marigolds, jasmine, and roses, was renamed “Tarluvada IT Hub and Data Center Hub” on Google Maps. Google is working with the state government to acquire 480 acres of land across three locations, including 200 acres belonging to Dalit families who are under pressure to sell.
Pyla Kondamma, a farmer and former head of the village council, refuses to give up her land. “We are not afraid—even if they kill us, we will not give it away,” she said. Kondamma is a member of a Dalit caste, the social group least likely to own land in India. In Visakhapatnam district, 68% of Dalit households do not own any land. The state allotted land to some landless Dalit families through a special programme in the 1970s, which is now being acquired for the Google project.
The growing dependence on coal to power these data centres is another significant concern. In Kattukuppam, a fishing village in Ennore on the outskirts of Chennai, residents have lived in the shadows of coal-fired power plants since the 1970s. The power plants’ fumes have polluted the air, while hot water and chemical waste have contaminated the surrounding river and sea. Fish catches have declined, and residents report higher instances of cancer and infertility.
In 2017, an ageing power plant was shut down, bringing temporary relief to the residents. However, in 2025, the government announced it was opening a new power plant on the grounds of the old facility to meet the rising demand from data centres and electric vehicles. The Indian government has deferred plans to retire ageing coal-fired power plants and approved 44 new coal power plant projects. Mumbai authorities have added more coal-based power to the city’s energy mix to meet the growing demand from data centres.
Residents in Ennore have voiced their concerns about the new power plant. Children in the community have higher rates of cancer and respiratory illnesses compared to other parts of the city. A 2025 report by the Save Ennore Creek Campaign warned that air quality would deteriorate sharply if all three new plants became operational. Air pollutants from coal-fired power plants are twice as deadly as those from other sources, according to a Harvard study published in the Nature journal.
