Archive · 29 Aug 2026
Global Data Centre Growth Faces Rising Community Opposition
Data centres are large buildings filled with computers that store and process digital information.
They are growing quickly because of the internet and artificial intelligence.
These buildings can use a lot of electricity and water.
Some communities worry that they could reduce local supplies, raise temperatures, or bring few benefits to residents.
Many people also say they do not receive enough information before projects are approved.
In the United States, many proposed projects have been delayed or stopped, while countries including Ireland, Singapore, and the Netherlands have introduced restrictions.
Shylesh Muralidharan says India should build more data centres because it creates a large amount of the world’s data.
He says India should first make rules requiring developers to explain their power, water, emissions, and infrastructure plans.
He also recommends choosing locations that have suitable resources and community support.
Communities worldwide are increasingly opposing or restricting new data centre projects.
About 75 US projects worth roughly $130 billion were reportedly blocked or delayed in the first quarter of 2026.
Critics cite data centres’ demands for electricity and water, environmental effects, and limited public disclosure.
Shylesh Muralidharan is developing readiness tools to compare power, water, connectivity, regulation, and community factors.
He says India should expand data centre capacity but require national rules, location screening, clean energy, and full disclosure.
- Who
- Communities, governments, data centre developers, and technology companies are involved; Shylesh Muralidharan of the Portulans Institute provides the analysis.
- What
- Opposition and restrictions against data centre projects are increasing because of concerns about resource use, environmental effects, and inadequate transparency.
- When
- The article describes current trends and cites approximately 75 US projects blocked or delayed in the first quarter of 2026.
- Where
- The opposition is reported in the United States and globally, including Ireland, Singapore, Amsterdam, and India.
- Why
- Communities are concerned about electricity and water consumption, grid impacts, emissions, local environmental effects, and whether they will share in the economic benefits.
Data Centre Expansion
Community Safeguards
Whether India should expand
Data Centre Expansion
India should build more data centres because it generates roughly one-fifth of global data, hosts only about 3% of capacity, and faces growing demand from AI, 5G, and data localisation.
Community Safeguards
Expansion should proceed only with discipline, transparency, suitable locations, clean energy, and community consent.
Project approval process
Data Centre Expansion
Developers and governments may view faster construction and investment as important for digital infrastructure and economic development.
Community Safeguards
Communities and Muralidharan argue that large data centres should face mandatory disclosures and impact-related scrutiny comparable to other major industrial facilities.
Energy and water choices
Data Centre Expansion
Developers may consider electricity cost, grid access, engineering solutions such as closed-loop cooling, and alternatives including nuclear or distributed facilities.
Community Safeguards
Local concerns focus on water and power availability, emissions from fossil-fuel generation, grid-upgrade costs, and the risk of locking in carbon-intensive energy for decades.
- US projects affected
- About 75 projects worth approximately $130 billion were blocked or delayed in the first quarter of 2026, according to Data Center Watch.
- Ireland electricity use
- Data centres consume more than 20% of Ireland’s national electricity, according to the interview.
- India’s data position
- India generates roughly one-fifth of the world’s data but hosts about 3% of global data centre capacity.
- Readiness index
- The Portulans Institute is developing a Data Center Readiness Index covering power, water, connectivity, regulation, and community sentiment.
- Location assessment
- Muralidharan’s startup has identified more than 12 domains and over 500 parameters relevant to data centre locations.
- Recommended Indian policy
- Muralidharan recommends national rules requiring disclosure of power use, grid-upgrade costs, water use and discharge, emissions, and other project impacts.
- Preferred energy source
- Muralidharan says renewable electricity should be prioritised when selecting data centre locations.