As Google moves forward with building a massive data center in Visakhapatnam, global trends are flashing caution signals.
Around the world — especially in the United States — data centers are increasingly being blamed for rising electricity bills, strained infrastructure, and growing public anger.
With Andhra Pradesh embracing Vizag as a future tech hub, the same concerns are beginning to surface closer to home.
Across the U.S., residential electricity bills rose by 6% on average this August, according to the U.S. Energy Information Administration. But the situation is far more alarming in states that host large clusters of data centers.
Electricity prices jumped by 13% in Virginia, 16% in Illinois, and 12% in Ohio. These regions are home to some of the biggest AI and cloud computing zones in the world. Their power grids are struggling to keep up with massive energy demands.
Some modern AI-driven facilities consume as much as one gigawatt of electricity — roughly equal to the needs of more than 800,000 homes. In other words, each data center can draw the same power as an entire city.
With U.S. elections approaching, voters and politicians are openly expressing frustration and blaming tech companies for surging power bills.
This global trend raises uncomfortable questions for Andhra Pradesh.
Vizag is being promoted as a major IT and cloud destination, and Google’s data center is expected to be one of the state’s biggest infrastructure investments.
The project promises jobs, improved digital infrastructure, and major foreign investment, but the pressures seen abroad cannot be ignored.
Vizag’s power grid has been under financial and structural strain for years. A hyperscale data center requiring hundreds of megawatts could stretch the system unless the state makes significant upgrades.
Without careful planning, Andhra Pradesh could see increased power tariffs, prioritization of corporate electricity needs over household supply, and greater stress on an already fragile transmission network.
Electricity subsidies are another concern. Andhra Pradesh currently subsidizes domestic consumers, farmers, and small businesses. However, a massive data center needs uninterrupted, high-quality, high-load power.
This raises the fear that households may end up paying more so that corporate power can remain cheaper — a scenario resembling the backlash now seen in Virginia and Illinois.
Water usage is yet another hidden challenge. Data centers consume enormous amounts of water for cooling, and Vizag already experiences shortages during summer months. If the new facility draws millions of liters a day, local communities could feel the impact.
Environmental risks also loom large. Hyperscale AI centers generate substantial heat and carbon emissions unless backed by sufficient renewable energy.
While Andhra Pradesh is expanding solar and wind capacity, it remains uncertain if this will be adequate to meet Google’s projected consumption.
The benefits of the data center are clear: job creation, a stronger IT ecosystem, global visibility, and better digital infrastructure. But the drawbacks — rising electricity prices, pressure on the grid and water supply, environmental strain, and the possibility of public frustration — cannot be overlooked.
To avoid the fate of U.S. states now struggling with data center backlash, Andhra Pradesh must act proactively.
The state needs transparent planning on renewable energy usage, water management, electricity pricing, and environmental impact.
Officials must clearly outline how domestic electricity tariffs will be protected and share environmental and power assessments publicly.
Data centers are essential to the digital and AI revolution, but they come with heavy costs.
If Andhra Pradesh manages this transition with foresight and responsibility, Vizag could become a global technology hub. If not, the state risks facing the same crises now unfolding across the United States.
