New Delhi, Aug 2026 : Artificial Intelligence (AI) data centres proposed as part of building and construction projects with a built-up area exceeding 20,000 square metres will require Environmental Clearance (EC) under the Environmental Impact Assessment (EIA) framework, the Rajya Sabha was informed on Thursday.
Minister of State for Environment, Forest and Climate Change Kirti Vardhan Singh, in a written reply, said the government is also examining environmental sustainability requirements associated with the rapid expansion of digital and AI infrastructure in the country.
According to information provided by the Ministry of Electronics and Information Technology, the ‘Resilience, Innovation & Efficiency’ Working Group under the India AI Impact Summit has been constituted to examine issues including energy efficiency, water management and environmental resilience in digital and AI infrastructure.
The Minister said AI data centres proposed as part of a Township and Area Development Project covering more than 50 hectares and/or having a built-up area exceeding 1,50,000 square metres would also require environmental clearance.
During the environmental appraisal of such projects, authorities examine several factors relating to water availability and conservation. These include the availability of freshwater, particularly in water-stressed regions, water balance assessments, generation of greywater, and the recycling and reuse of treated greywater.
Based on these assessments, appropriate environmental safeguards are prescribed as part of the clearance process, Singh said.
He further stated that the use and discharge of water and greywater during the construction and operation of AI data centres are regulated under the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981.
Compliance with the provisions of these laws, including prescribed standards for water consumption and wastewater discharge, is monitored by the concerned State Pollution Control Boards (SPCBs) or Pollution Control Committees (PCCs), depending on the jurisdiction.
The government also regulates groundwater extraction for infrastructure and commercial projects in accordance with guidelines issued by the Ministry of Jal Shakti, the Minister said.
Singh highlighted the role of energy-efficient cooling systems in reducing the environmental footprint of data centres, which require significant amounts of power and water for their operations.
The Bureau of Energy Efficiency (BEE) has issued the District Cooling Guidelines, 2023, which recommend the use of treated water as cooling-tower make-up water wherever feasible. The objective is to reduce dependence on freshwater and promote sustainable water management.
The guidelines also encourage the adoption of energy-efficient cooling technologies, optimisation of cooling-system performance, use of alternative water sources and implementation of water-conservation measures.
The government said these measures are particularly important for large, cooling-intensive facilities such as AI data centres and are intended to improve energy efficiency, reduce freshwater consumption and promote more sustainable digital infrastructure development.
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