The proposed high-density Artificial Intelligence (AI) Data Center project at Naraj in Kataka district has sparked a political controversy in Odisha.
Former Union Minister Srikant Jena has written a detailed letter to Chief Minister Mohan Charan Majhi, raising critical questions regarding the project’s environmental sustainability, power consumption, water usage, and actual employment yield.
The ₹1.04 lakh crore project—with a capacity of 1 Gigawatt (1,000 MW)—was approved alongside 26 other proposals during the 46th High Level Clearance Authority (HLCA) meeting on September 23, 2026. Promoted by an Adani-linked enterprise, the project requires nearly 250 acres of land and vast natural resources. However, Jena highlighted growing public dissatisfaction over the lack of transparency, noting that the Memorandum of Understanding (MoU), power and water allocation terms, tax concessions, and the Environmental Impact Assessment (EIA) report have not been made public.
Heavy Power Consumption and Water Strain
In his letter, Jena pointed out that a 1 GW data center running at full capacity consumes nearly 2.4 crore units (24 million kWh) of electricity daily—an amount equal to the total daily domestic electricity consumption of Odisha’s 4.5 crore population. He warned that if this demand is fulfilled using coal-fired thermal power plants, it will inflict severe ecological damage on the state.
Furthermore, the project requires approximately 30 million liters per day (30 MLD) of water for cooling. Jena emphasized that the Twin Cities of Bhubaneswar and Kataka already face water management challenges, alongside the unresolved Mahanadi river dispute with Chhattisgarh. Diverting such massive quantities of water could severely threaten local drinking water supplies and agricultural activities.
Low Job Yield and Rising Urban Temperatures
Despite the astronomical capital outlay of ₹1.04 lakh crore, the data center is expected to create very few permanent jobs—potentially limited to around 50 engineers and 200–300 maintenance and security staff. Jena argued that investing in labor-intensive sectors, such as apparel manufacturing, could generate hundreds of thousands of jobs for local youth at a fraction of the cost.
The letter also cautioned against thermal pollution, noting that intense heat dissipation from the facility could raise ambient temperatures in the Kataka-Bhubaneswar zone by 2-3°, posing risks to local biodiversity and public health.
Demands for Public Disclosure and Alternative Coastal Sites
The former Union Minister has demanded that the state government immediately release all project details, HLCA meeting minutes, tax relief agreements, and resource allocation terms. He suggested shifting the facility from inland Naraj to a coastal location, where seawater could be utilized for cooling and renewable sources like wind and solar energy could fulfill power needs.
