Naraj AI Data Center Project Triggers Political Debate in Odisha
Bhubaneswar: A proposed AI Data Centre project at Naraj in Cuttack has ignited a political debate in Odisha after former Union Minister Srikant Jena raised concerns over its environmental impact, resource requirements, transparency, and employment potential.
The project, valued at approximately ₹1.04 lakh crore, was among the investment proposals approved during the 46th meeting of the High-Level Clearance Authority (HLCA).
In a letter addressed to Chief Minister Mohan Charan Majhi, Jena questioned the rationale behind setting up a large-scale AI data centre at Naraj and demanded that all project-related documents be made public.
He sought disclosure of the memorandum of understanding (MoU), environmental studies, power allocation details, water usage estimates, incentives extended to the developer, and minutes of the HLCA meeting.
Jena expressed concern over the project’s projected electricity consumption, stating that a fully operational 1 GW data centre could require around 24 million kWh of electricity daily.
According to him, such a demand could place additional pressure on Odisha’s power infrastructure and increase dependence on coal-based energy generation.
The former Union Minister also highlighted water usage concerns.
He noted that the facility may require nearly 30 million litres of water every day for cooling operations, raising questions about long-term sustainability at a time when the state continues to face water management challenges.
Another major issue raised by Jena was employment generation.
Despite the project’s massive investment size, he argued that the number of direct jobs created would be relatively limited compared to labour-intensive industries.
He urged the government to assess whether alternative sectors could generate greater employment opportunities for local youth.
Jena further warned of potential environmental consequences, including heat generation and its impact on the local ecosystem.
He called for a comprehensive Environmental Impact Assessment and public consultation before the project moves forward.
Suggesting an alternative approach, Jena proposed that the government consider coastal locations for the project, where seawater-based cooling systems and renewable energy sources could reduce environmental pressure.
The proposed data centre represents one of the largest investment commitments in Odisha’s technology sector.
While supporters view it as a significant step toward positioning the state in the AI-driven digital economy, critics are demanding greater transparency and a detailed assessment of its long-term environmental and economic implications.
