The Andhra Pradesh High Court has permitted construction on the Vizag Hyperscale Data Centre Park in Visakhapatnam to proceed at the developer’s own risk, ruling that the land allotment and project works remain subject to the final outcome of an ongoing public interest litigation.
Visakhapatnam High Court Bench Issues Interim Construction Order
Construction on the proposed hyperscale data centre in Visakhapatnam received conditional clearance on Tuesday from a bench headed by Chief Justice Lisa Gill and including Justice Challa Gunaranjan. While permitting the developer to move forward with site activities, the judges made it clear that investing money grants no automatic equity or permanent rights over the property.
The legal challenge centers on 160 acres of endowments land located in the Adavivaram and Mudasarlova areas, which has been allocated to Vizag Hyperscale Data Centre Park Ltd. According to the court filings, the land originally belongs to the Sri Varaha Lakshmi Narasimha Swamy Temple in Simhachalam. Petitioner counsel Virag Gupta argued before the bench that while the project itself faces no outright opposition from his side, developers must strictly adhere to environmental protection standards.
Project Proximity to Wildlife Sanctuary Sparks Regulatory Debate
The debate in court turned largely on how the project is classified under environmental regulations and its proximity to sensitive ecological zones. Petitioner representatives pointed out that the selected site sits within a catchment area and lies within one kilometer of the Kambalakonda wildlife sanctuary. Arguing that the development falls under Category A, the petitioner’s legal team insisted that mandatory central government clearances should apply.
State and corporate representatives countered those claims by pointing to prior regulatory approvals. State Advocate General Dammalapati Srinivas informed the court that the State Environmental Impact Assessment Authority granted environmental clearance on June 10 after a thorough review. He noted that the project is classified under Category B, making the state-level authority’s clearance sufficient, and added that water for operations would be routed through the rural water supply scheme.
High Court Reviews Land Allotment Despite Separate Tribunal Litigation
The high court proceedings also intersected with separate litigation unfolding before another tribunal. The advocate general noted that environmental activist VS Krishna has challenged the state’s environmental clearance separately before the National Green Tribunal. However, the high court bench held that the pendency of those NGT proceedings does not block the judiciary from reviewing the broader land allotment issues raised in the current petition.
Appearing for the data centre developer, senior counsel Avinash Desai cited recent central communications to support the project’s regulatory standing. He told the bench that the Union Ministry of Environment and Forests stated in a Rajya Sabha reply that data centres do not require separate, standalone environmental clearances beyond standard building permissions. The court directed all respondents to file detailed counter affidavits and adjourned the hearings.