Andaman and Nicobar floats plan for green AI data centre on islands

The Andaman and Nicobar administration has invited feasibility proposals from private companies for setting up a 'Green AI/Data Centre Vertical' on the islands. The expression of interest (EoI) was released on August 10 and is being seen as a move to explore digital infrastructure development in the region.

The project is separate from the larger ₹91,000-crore mega infrastructure plan for Great Nicobar Island, which includes a transhipment port and an airport. That plan has faced opposition from local tribal communities, who say it threatens their land and way of life.

According to the EoI, potential sites for the data centre include Hutbay Sea Area and Netaji Nagar Sea Area on Little Andaman, and Campbell Bay, Anderson Bay, Vijay Nagar Bay, and Gandhi Nagar Bay Sea Areas on Great Nicobar Island. These areas fall within zones already designated in the draft master plan for the mega project for purposes such as tourism, agriculture, wildlife corridors, and residential development.

The administration says the EoI is only a 'market sounding' exercise to gauge private interest. It is not a tender or a request for proposals. Interested firms, including hyperscalers, cloud service providers, AI infrastructure companies, and renewable energy firms, have until September 24 to submit proposals.

The EoI suggests that the data centres could run on renewable energy and use seawater-based cooling systems to avoid freshwater consumption. It also mentions options such as waste-heat recovery, desalination, and submarine digital connectivity as part of the proposed infrastructure.

However, local officials involved in preparing the draft master plan for Great Nicobar told The Hindu they were not aware of any discussions about a data centre project. Members of the Tribal Council of Great and Little Nicobar, who met with the administration earlier this week, said they were not informed about the data centre plan during their discussions.

One tribal council member said the meeting lasted only 15 minutes and focused on buffer zones around settlements. The member said officials mentioned provisions for 30 to 100 metre buffer areas, but the council asked for time to survey the land before responding.

The administration's EoI says the government's role will be limited to facilitating coordination and providing institutional support on land, power, connectivity, clearances, and environmental safeguards, as applicable under law. The project would be led by the private sector.

Environmental experts and civil society groups have previously raised concerns about the ecological impact of large infrastructure projects on the islands, which are home to unique biodiversity and indigenous communities. The data centre project, if it goes ahead, would need to address these concerns through transparent consultations and environmental impact assessments.

The EoI reflects a broader push by the central government to position India as a hub for digital infrastructure, including artificial intelligence and cloud computing. However, the implementation on ecologically sensitive island territories will require careful balancing of development goals with environmental and social safeguards.