LawQuorum

Home › News › NGT Seeks Centre's Reply on Plea Against Clearance for ₹17,700 Crore Vizag Data Centre

NGT Seeks Centre's Reply on Plea Against Clearance for ₹17,700 Crore Vizag Data Centre

16 Oct 2026 · Legal News · By LawQuorum

The National Green Tribunal (NGT) has sought the Central government's response to a plea challenging the environmental clearance granted for a ₹17,700 crore data centre project in Visakhapatnam, Andhra Pradesh. The project is part of an artificial intelligence (AI) infrastructure initiative involving Google and the Adani Group.

A bench of Judicial Member Justice (retired) Pushpa Sathyanarayana and Expert Member Prashant Gargava posted the matter for further hearing on October 26. The appeal was filed by Boddu Ganga Rao, a former corporator of the Greater Visakhapatnam Municipal Corporation.

The clearance under challenge was granted on June 10, 2026, to Vizag Hyperscale Data Centre Park Limited, a special purpose vehicle of Adani Infra (India) Limited. The proposed 512 MW data centre is to come up at Adavivaram and Mudasarlova villages and forms part of Google's larger $15 billion AI hub in Visakhapatnam, being developed with AdaniConneX and Airtel.

The appellant has alleged that the project, located just 750 metres from the Kambalakonda Wildlife Sanctuary and 470 metres from its notified Eco-Sensitive Zone, was wrongly classified as a Category B2 construction project. According to the plea, the project's proximity to the protected area required a more stringent environmental appraisal by the Central government instead of clearance by the State Environment Impact Assessment Authority (SEIAA).

The appeal also flags concerns about the project's impact on the Mudasarlova Reservoir, an important drinking water source for Visakhapatnam. It claims the site lies immediately uphill from the reservoir and that excavation and construction could obstruct seven natural streams feeding it. The appellant argues the clearance was granted without an independent hydrological or catchment assessment.

The plea questions a May 8 permission issued by the divisional forest officer for clearing forest growth over 160 acres adjoining the reservoir, alleging that mandatory approvals under forest conservation laws were not obtained. It also alleges that the environmental appraisal did not adequately consider the project's electricity and water requirements, as well as noise pollution affecting nearby residential areas. The proposal, the appeal states, was examined by the State Level Expert Appraisal Committee in a single sitting on May 12 before the clearance was eventually granted.

The Andhra Pradesh government had approved the allotment of 601.4 acres across three locations for the larger AI data centre initiative in February 2026, with 160 acres earmarked for the Adavivaram-Mudasarlova project.

The appellant has sought quashing of the environmental clearance and an interim direction restraining construction, excavation, tree-felling and site preparation activities pending disposal of the proceedings. The appellant was represented by advocates KM Meenal, Kumar Abhishek, M Harshini, G Sushmitha and Santosh Kumar Yadav.

Source: Barandbench