Prime Minister Narendra Modi’s plan to make India a global hub for AI data centres is facing resistance from local residents. A Reuters investigation looked at the growing opposition near big projects.

Amazon plans to invest 21 billion dollars in Indian data centres by 2030. Microsoft has committed 20.5 billion dollars. Thane, near Mumbai, has become a flashpoint. Residents held a protest there on September 8.

Locals fear the projects will strain water and power supply. An S&P report said 60 to 80 per cent of India’s data centre capacity is in water-stressed zones. Data centres used an estimated 150 billion litres of water in 2025.

The government says data centres will create jobs and attract tech investment. Residents want clear rules on water use and local hiring before projects expand. Policy experts said community consent will decide how fast the build-out goes.

Industry bodies said India needs clear land and power policies to win global AI workloads. The Centre has promised single-window clearances for large digital infrastructure. State governments are now competing to host the next wave of projects.