The National Green Tribunal (NGT) has sought a response from the Central government to a petition challenging the environmental clearance granted to a ₹17,700 crore data centre project in Visakhapatnam, Andhra Pradesh, being developed as part of a wider artificial intelligence (AI) infrastructure initiative involving Google, the Adani Group and Airtel.
The proposed 512 MW data centre, planned across Adavivaram and Mudasarlova villages, forms part of Google’s larger $15 billion AI hub in Visakhapatnam. The petition challenges the environmental clearance issued to the project and raises concerns about its potential impact on ecologically sensitive areas and a key drinking water source.
Petition raises concerns over wildlife sanctuary and reservoir
The appeal was filed by Boddu Ganga Rao, a former Greater Visakhapatnam Municipal Corporation corporator, challenging the environmental clearance granted on June 10, 2026, to Vizag Hyperscale Data Centre Park Limited, a special purpose vehicle of Adani Infra (India) Limited.
According to the petition, the proposed site is around 750 metres from the Kambalakonda Wildlife Sanctuary and approximately 470 metres from its notified eco-sensitive zone. The petitioner has alleged that the project was incorrectly classified as a Category B2 construction project, allowing it to receive clearance through the state-level appraisal process rather than a more stringent assessment at the Central government level.
The appeal also flags the proximity of the project to the Mudasarlova Reservoir, an important source of drinking water for Visakhapatnam. The petitioner has claimed that excavation and construction activities could obstruct natural streams feeding the reservoir, potentially affecting its water inflows.
These concerns remain allegations raised in the petition and have not been established as findings by the tribunal.
Questions over environmental appraisal
The petitioner has also questioned whether the project's environmental assessment adequately considered its water and electricity requirements, noise pollution and potential effects on the surrounding area.
The appeal further challenges permission issued by the divisional forest officer on May 8 for clearing forest growth over 160 acres adjoining the reservoir. The petitioner has alleged that the necessary approvals under forest conservation laws were not obtained.
According to the plea, the project proposal was examined by the State Level Expert Appraisal Committee in a single sitting on May 12, before the environmental clearance was granted.
The petitioner has sought the cancellation of the clearance and an interim order restraining construction, excavation, tree-felling and site preparation while the case is pending.
Part of a larger AI infrastructure push
The data centre is part of a broader AI infrastructure initiative planned for Visakhapatnam, with Google working alongside AdaniConneX and Airtel. In February 2026, the Andhra Pradesh government approved the allotment of 601.4 acres across three locations for the larger initiative, including 160 acres earmarked for the Adavivaram-Mudasarlova project.
The NGT bench comprising Judicial Member Justice (retired) Pushpa Sathyanarayana and Expert Member Prashant Gargava has listed the matter for further hearing on October 26. The tribunal is expected to consider the matter as the challenge to the environmental clearance proceeds.
The case brings the project's environmental appraisal under scrutiny as Visakhapatnam moves ahead with plans to establish itself as a major centre for AI infrastructure and data centre investment.