A.P. data centre case: High Court takes note of land allotment and environmental concerns

Intense arguments took place in the Andhra Pradesh High Court on Wednesday (September 9, 2026) during a hearing on the on the allotment of temple lands situated in an Eco Sensitive Zone (ESZ) to Google’s hyperscale data centre being set up in Visakhapatnam and Anakapalli districts.

Concerns relating to the requirement of huge quantities of water and electricity were raised in the hearing of the writ petition filed by Jal Biradari National Convener Bolisetty Satyanarayana.

Advocate General Dammalapati Srinivas informed the Division Bench led by Chief Justice Lisa Gill that the PIL was not maintainable as two causes of action namely the allotment of lands belonging to the Simhachalam Devasthanam and environmental clearances were clubbed.

Besides, he insisted that the case falls in the jurisdiction of the National Green Tribunal, where three matters were already pending.

Referring to the case details, Chief Justice Gill said the claim that the impugned land was leased out for 30 years and the counter claim that the allotment was made on lease basis initially for only 11 years and it was extendable by the A.P. Industrial Infrastructure Corporation beyond that period needed a close scrutiny.

She called for comprehensive notes thereof from both the parties to form an opinion.

Counsel for the petitioner, Virag Gupta, contended that the Endowment lands should not have been allotted to a foreign company (Vizag Hyperscale Data Center Park Limited which is explicitly owned by Google Inc.), for purposes other than those required by the Hindu community, and for a period not exceeding 11 years as per the State law related to immovable properties and the amended Lease & License Rules, 2003.

He noted that there were also issues related to data localisation on which there were several judgements in the country.

There was no lease deed registered and the very location of the project within a distance of one kilometre from the ESZ of Kambalakonda reserve forest warranted stringent compliances with the Central norms applicable to Category – A project, whereas it was passed off as one falling in the ‘B category.

There were notable legal actions including moratoriums and court orders which either halted or challenged data centre projects in the U.S., he added.