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Maharashtra Plans Data Centre Policy Amid Rising Environmental Concerns

The Maharashtra government is preparing a dedicated Data Centre Policy to regulate the rapidly expanding digital infrastructure sector while addressing concerns over its impact on residential neighbourhoods, natural resources and the urban environment.

The proposed framework is expected to introduce comprehensive Standard Operating Procedures (SOPs) covering the location, resource consumption and environmental footprint of data centres. The policy is being jointly developed by the Maharashtra Pollution Control Board (MPCB) and IIT Bombay and is expected to be finalised within the next few months.

Once implemented, Maharashtra could become the first state in India to establish a comprehensive regulatory framework specifically for data centre facilities.

The need for stronger oversight has gained attention following opposition to an upcoming Amazon Web Services (AWS) data centre in Balkum, Thane. Residents have raised concerns about noise, heat generation and the potential impact on local resources.

MPCB chairman Siddhesh Kadam said environmental concerns linked to new data centre projects were being treated seriously, while the state would continue to encourage investments in the sector. However, he stressed that economic growth should not come at the expense of environmental protection.

Buffer Zones, Water Use Under Review

The proposed policy is expected to introduce mandatory buffer zones between large data centres and residential areas. Developers could also be encouraged to locate new facilities away from densely populated neighbourhoods to reduce pressure on existing infrastructure and nearby communities.

Water consumption is another key issue being examined. Since large data centres require substantial quantities of water for cooling servers and equipment, the proposed rules could encourage or mandate the use of recycled and treated wastewater instead of relying heavily on fresh municipal supplies.

Noise-control measures are also likely to feature in the framework. Facilities may be required to install advanced acoustic barriers to reduce low-frequency noise from generators and cooling systems. Authorities are also examining ways to monitor localised heat generation and introduce stricter energy-efficiency standards.

Global Practices to Guide Regulations

The state is also studying international experience from countries with established data centre industries. Kadam said lessons from these markets were being considered while determining suitable “operating measures” and identifying appropriate locations for such facilities.

The proposed policy aims to create a balance between Maharashtra’s ambition to attract data centre investment and the need to protect residential areas, water resources, energy systems and the wider urban environment.

With Mumbai, Thane and other parts of Maharashtra emerging as important digital infrastructure hubs, the policy could establish clearer environmental and planning standards for the sector’s future expansion.

Source: Mumbai Live

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