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Amazon Highlights India Water Gains as Data Center Expansion Faces Environmental Scrutiny

Mumbai- Amazon said on Friday it had become “water positive” across its operations in India, reaching a key sustainability target ahead of schedule as technology companies face growing scrutiny over the environmental impact of expanding data center infrastructure to support artificial intelligence growth.

The U.S. technology and e-commerce company said it now returns more water to communities than it consumes across its Indian operations, including data centers, warehouses and corporate offices. Amazon said the milestone was achieved a year earlier than planned through reductions in water consumption and investments in projects such as watershed restoration and efficient irrigation systems.

The announcement comes as major technology firms, including Amazon, Microsoft and Google’s parent company Alphabet, face increasing pressure from shareholders, environmental groups and local communities over the resource demands associated with large-scale data center developments.

Amazon has pledged to become water positive across its global data center operations by 2030. The company said its data centers in India do not use water-based cooling systems, a notable distinction in a country where water availability remains a persistent challenge.

India accounts for roughly 18% of the world’s population but possesses only about 4% of global freshwater resources, making water management a critical issue for policymakers and businesses alike.

Water shortages typically intensify during the summer months, and conditions have been exacerbated this year by weak monsoon rainfall linked to a strong El Niño weather pattern.

Among the regions facing the greatest pressure are Karnataka, home to the technology hub of Bengaluru, and Maharashtra, which includes Mumbai, India’s financial capital. Authorities in Mumbai said this week the city, with a population of about 13 million, had water reserves sufficient for only around 40 more days under current conditions.

The water conservation announcement coincides with Amazon’s broader expansion plans in India, one of its fastest-growing markets. The company has said it intends to invest more than $35 billion in the country by 2030 to strengthen artificial intelligence capabilities and support export growth.

Amazon Web Services, the company’s cloud computing division, plans to invest approximately $8.2 billion in Maharashtra, according to information previously disclosed by India’s Ministry of Electronics and Information Technology.

Microsoft and Google have also unveiled significant investments in India’s data center sector over the past year, reflecting growing demand for cloud services and AI-related computing infrastructure in the country.

As technology companies accelerate investments in digital infrastructure, environmental concerns surrounding electricity consumption, land use and water resources are increasingly becoming a focus for regulators, investors and local communities.