AI data centres don't need standalone environmental clearance, says govt
The Union government told Parliament that AI data centres do not, per se, require environmental clearance under the Environmental Impact Assessment (EIA) Notification, 2006
 "AI data centres don't need standalone environmental clearance, says govt")
Artificial Intelligence (AI) data centres do not require standalone environmental clearance in India unless they fall under existing categories of large building or township projects, the Centre told Parliament on Thursday.
Earlier this week, the government also said the sector's environmental footprint would be governed through existing laws, standards and sectoral policies rather than an AI-specific regulatory framework.
No separate environmental clearance for AI data centres
In a written reply in the Rajya Sabha, the Ministry of Environment, Forest and Climate Change (MoEFCC) said AI data centres "do not, per se, require Environmental Clearance (EC)" under the Environmental Impact Assessment (EIA) Notification, 2006.
The ministry said prior environmental clearance will be required only if an AI data centre is proposed as part of a building and construction project with a built-up area exceeding 20,000 square metres, or a township and area development project covering 50 hectares or more or having a built-up area of 1,50,000 square metres or more, as specified under the existing EIA Notification. In such cases, clearance is granted by the State Environment Impact Assessment Authority (SEIAA).
The ministry said that during the appraisal of such building projects, "availability of freshwater particularly in water-stressed regions, water balance report, generation of greywater, recycling and reuse of greywater are duly considered and appropriate environmental safeguards are prescribed".
It added that water use, wastewater discharge and greywater management during construction and operation are already regulated under the Water Act, 1974 and the Air Act, 1981, with compliance monitored by State Pollution Control Boards and Pollution Control Committees.
The reply also said groundwater extraction for commercial infrastructure projects continues to be governed under the Ministry of Jal Shakti's existing guidelines.
Existing policies instead of AI-specific framework
In a separate written reply in the Lok Sabha on Wednesday, the Ministry of Electronics and Information Technology (MeitY) said existing renewable energy policies, building codes, BIS standards for data centres, groundwater regulations and energy-efficiency measures "collectively provide a framework" for AI infrastructure.
The ministry said India's data centre capacity has grown from 375 MW in 2020 to about 1,575 MW.
Among the measures cited were the Green Energy Open Access Rules, Green Energy Corridor Scheme, National Green Hydrogen Mission, Energy Conservation Building Code (ECBC 2017), Energy Conservation and Sustainable Building Code (ECSBC 2024), and BIS standards covering Power Usage Effectiveness, Carbon Usage Effectiveness, Cooling Efficiency Ratio and Water Usage Effectiveness for data centres.
It also said the industry is adopting technologies such as direct-to-chip liquid cooling, immersion cooling and closed-loop liquid cooling systems, along with high-density racks, to reduce power and water consumption.
The reply, however, does not say these standards or technologies are mandatory for AI data centres.
Global scrutiny of AI infrastructure grows
Governments elsewhere are considering stricter oversight of AI infrastructure because of concerns over electricity demand, water consumption and local environmental impacts.
Last month, New York became the first US state to impose a one-year moratorium on new hyperscale data centres requiring 50 MW or more of power while regulators prepare a dedicated environmental framework for future projects.
Announcing the decision, New York Governor Kathy Hochul said, "The bottom line is progress shouldn't arrive with a higher utility bill, depleted water supply or noise pollution," adding that the state would require large data centres to produce their own energy or pay a premium to use the grid. She also said the moratorium would help create "the strongest standards in the nation for data centre development".