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Maharashtra pushes data hubs while residents in Thane protest upcoming Amazon facility

Reported by Kunal Bhatia (Senior Writer) Β· The Hindu - National Β·

Unconfirmed β€” Reported by one source so far

Reported by one source so far

Worth knowing
Maharashtra pushes data hubs while residents in Thane protest upcoming Amazon facilityPhoto: Wikimedia Commons

Maharashtra is expanding its green data centre parks policy even as large facilities continue to rely heavily on the conventional power grid through open-access green energy accounting. The State Load Despatch Centre found that Mumbai and Navi Mumbai's 30 big data centres operate as stable loads without adding grid distortions. However, experts explain that standalone solar or wind plants cannot directly power these facilities due to high land costs and round-the-clock reliability needs, meaning green power purchases function mostly as an accounting mechanism rather than direct physical delivery.

Policy Changes

In its updated June 2026 scheme, the Maharashtra government increased the number of green integrated data centre parks from 3 to 20 and expanded their scope across the state. At the same time, the state cut its mandatory green energy requirement for these parks from 100% down to 51%. Companies investing up to 30,000 crore rupees will receive a tariff concession of one rupee per unit for 10 years, while investments up to 60,000 crore rupees get the concession for 20 years.

Resident Protests

In Balkum, Thane, residents under the banner 'Wake Up Thanekars' are opposing an upcoming 422 MW Amazon data centre near schools, hospitals, and homes. Resident Himani Verma stated that locals already face water and power cuts and fear the facility will worsen shortages while generating severe noise and exhaust pollution from its 193 diesel generator sets. Dr. Sanjeevani of Lokraj Sangathan noted that research shows land surface temperatures around AI data centres can rise by two to nine degrees Celsius. Jatin Kothare added that residents met with the Thane municipal commissioner, where Amazon stated it would use recycled water from city sewage treatment plants.

Context

Data centres require massive amounts of electricity and water for cooling to run continuously without downtime. While companies often partner with renewable energy providers to meet corporate green targets, their actual physical power is still drawn from the regional electrical grid, creating local debates over resource allocation and environmental impact.

ExplainerWhy this matters

What Happened

Maharashtra has amended its data centre policy to promote more green parks across the state while reducing the mandatory renewable energy threshold to 51%, alongside tariff concessions for large investments. Simultaneously, residents in Thane's Balkum area have launched protests against an upcoming Amazon data centre over concerns about local power supply, water usage, noise, and heat emissions.

Why It Matters

This situation highlights the clash between state-level economic ambitions to attract digital infrastructure and local grassroots concerns about municipal resource strain. While data centres commit to buying green energy on paper, their physical presence on local electrical grids and water networks directly impacts nearby urban communities that already experience utility shortages.

What Happens Next

Discussions between local residents, municipal authorities, and project developers will likely continue regarding water sourcing and environmental clearances. Observers will also watch how the state balances grid stability with the massive electricity demands of incoming hyperscale data installations.

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