Data centres and AI infrastructure, a very relevant topic for MBA GDs and interviews. Many countries are starting to push back against large AI data centres because of concerns around water usage, electricity demand, and environmental impact.

For example, in the US, some local governments and communities have blocked or delayed projects worth billions of dollars due to worries about rising electricity bills, water shortages, and environmental damage. Farmers have even refused to sell land for such projects.

At the same time, India is actively encouraging data centre expansion with incentives and long-term tax benefits. With the AI boom, companies are looking for new places to build infrastructure, and India is positioning itself as a major hub.

But the debate isn’t simple. On one hand, data centres power the digital economy everything from cloud services to AI tools. On the other hand, they consume enormous amounts of water and electricity.

A few facts that make the debate interesting:

• India already has 270+ data centres, with states like Maharashtra, Tamil Nadu, and Karnataka leading.
• In 2024, Indian data centres reportedly consumed around 150 billion litres of water.
• A 20-MW data centre can use about 1.4 million litres of water per day, roughly the daily usage of 27,000 families.
• Electricity demand from data centres could reach 40-45 terawatt-hours by 2030.
• Despite huge investments, a typical data centre may only employ 20-100 people after construction.

How You Can Approach This Question in a GD/PI

Instead of saying “data centres are bad for the environment”, initiate with the Importance and acknowledge why they matter.

Mention the Concerns : Specific facts

• High water consumption for cooling systems
• Large electricity demand and grid pressure
• E-waste from rapidly changing hardware
• Relatively low long-term employment generation

Add the Policy Perspective: Explain why India still wants them:

• Growing digital economy and AI industry
• Strategic need for data localization
• Attracting global tech investment
• Supporting cloud infrastructure and startups

Balanced Solution: Panels love when candidates move to solutions instead of just criticism.

• Using renewable energy to power data centres
• Building them in water-secure regions
• Mandating water recycling and cooling efficiency
• Stronger e-waste recycling regulations
• Encouraging smaller, energy-efficient AI models

What NOT to Do in a GD

Avoid:

Turning it into an anti-technology rant
Taking an extreme “AI is destroying the planet” stance
Quoting random numbers without context

Instead:

Focus on economic + environmental balance
Mention both opportunities and risks
Suggest policy improvements