The establishment of hyperscale AI data hubs have resulted in protests in Europe –Ireland, Scotland, the Netherlands, Germany, Spain, Italy, and France. And it has not been a smooth ride for technology companies in Chile, Uruguay, Brazil, Paraguay, and Mexico. And now, they are coming in big in India… At the core of the objections in the US, Europe and Latin America are environmental concerns. Even tech companies acknowledge that data centres are a considerable drain on local resources, require large amounts of power from the grid, and guzzle water, which in turn depresses the water table in and around the areas where they operate. This affects the water supply for residents and farmers, who will face acute water shortages. The protests in the US have been widespread. A recent report in The Guardian, quoting the research group Data Center Watch, notes that $98 billion worth of projects were delayed or cancelled between March and June 2025 in the United States because of opposition from local communities. More than 20 groups across 17 states successfully opposed these projects, forcing local authorities to review the permits granted.
By Ajith Pillai in Chennai
Budget 2026 included a significant corporate concession that received little media attention: an extraordinary 21-year tax holiday, lasting until 2047, for foreign technology companies that invest in data centres in India. Perhaps this act of magnanimity by the Union finance minister was played down by mainstream media because the Budget was sandwiched between two hyped events —the “mother” of all trade agreements with the European Union and the “father” of all post-tariff deals with the United States.
However, in the tech world, especially among the Big Four AI companies — Google, Amazon, Microsoft and Nvidia — the announcement of a tax holiday was met with great enthusiasm. The big tech bros have already packed their bags to be in Delhi for the AI Summit starting February 16 and booked Rs 15-30 lakh per day suites at five-star hotels in Delhi.
Lesser tech mortals opted for rooms priced between Rs 3-4 lakh per day (tax not included). Apparently, the hotels strategically upped their rates for the occasion despite Trump’s zero-tariff proclamation for everything American!
At the Summit, hyper-scale generative AI-compatible data centres will undoubtedly be a major topic of discussion. Silicon Valley billionaires view India as the next port of call for establishing large data centres, thanks to an extremely supportive government in Delhi, favourable regulations, cheaper power, lower operating costs, and minimal anticipated public protests.
In stark contrast, in the United States, there has been increasing community resistance to large hyper-scale data centres that support AI innovation and training.
At the core of the objections in the US, Europe and Latin America are environmental concerns. Even tech companies acknowledge that data centres are a considerable drain on local resources, require large amounts of power from the grid, and guzzle water, which in turn depresses the water table in and around the areas where they operate. This affects the water supply for residents and farmers, who will face acute water shortages.
The protests in the US have been widespread. A recent report in The Guardian, quoting the research group Data Center Watch, notes that $98 billion worth of projects were delayed or cancelled between March and June 2025 in the United States because of opposition from local communities. More than 20 groups across 17 states successfully opposed these projects, forcing local authorities to review the permits granted….
https://www.independentink.in/post/when-tech-billionaires-come-marching-in
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