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Residents accused Microsoft’s data-centre project at Mekaguda, Telangana, of dumping waste near Tungakunta Lake, encroaching on the lake and blocking a farm access route. Microsoft denied the allegations and said it had the required permits. Official records confirm the project received environmental and pollution-control approvals, but those approvals do not establish whether later construction complied with every condition. The records available here do not resolve the claims through a final court ruling or a verified inspection finding.
What is the Mekaguda project?
Microsoft proposed a data centre identified in its environmental filing as HYD 01, in Mekaguda village, Nandigama mandal, Rangareddy district, Telangana. The application lists survey numbers 859, 862, 880, 881, 882, 883 and 892, and a proposed built-up area of 67,336 square metres. These are details from the project proposal, not confirmation of the final as-built site. Microsoft’s environmental-clearance application describes the land as vacant and in a manufacturing zone.
At the time of earlier reporting, completion was projected for 2025 and employment of about 180 people was cited. Those were forecasts, not verified outcomes; the materials cited here do not establish whether the facility is now complete or operating.
What residents alleged
In reports about a petition filed in July 2023, 57 local residents or farmers said that development around Tungakunta Lake and nearby land had affected their access and livelihoods. The reported claims included that:
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- the project boundary extended beyond the land Microsoft was entitled to use;
- a communal cartway used by farmers had been blocked, with fencing reportedly extending for about 380 metres along a disputed route;
- Tungakunta Lake was being used as a dumping ground, and waste or effluent threatened water, cattle and farming; and
- construction created or risked air and water pollution.
These are allegations, not established findings. The reported petition named Microsoft alongside other companies and public authorities, so the dispute should not be reduced to a claim that every alleged environmental problem in the area came from Microsoft. Contemporary accounts describe a wider conflict involving lake protection, access routes, land and nearby industrial activity. Scroll, Land Conflict Watch and The Hans India reported on the residents’ claims and court approach.
What the project filings say about water and nearby ponds
The environmental application gives planned water figures and describes proposed sourcing and treatment. It estimates construction demand at about 500 kilolitres per day, with approximately 124,900 cubic metres required over the construction period. For operation, it estimates gross demand of 66 kilolitres per day: about 5 KLD potable water and 61 KLD non-potable water, including 7.3 KLD of recycled water. The filing says potable water would come from TSIIC and non-potable water from authorised tanker vendors or wastewater-treatment sources. These are design estimates and commitments, not measured consumption or proof of actual discharge.
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The application says there was no “significantly large” water body within 15 kilometres, while also identifying small seasonal ponds: one about 18 metres west of the site and another about 330 metres northeast. It proposed rainwater harvesting associated with seasonal ponds. Residents, by contrast, alleged that Tungakunta Lake was affected or encroached upon. Those descriptions cannot be reconciled from wording alone. Determining whether a particular lake, pond, feeder channel or lake-boundary area overlaps the project or was affected requires cadastral maps, official lake demarcation and site-specific inspection evidence.
The filing also outlines drainage, sewage treatment and waste-management measures. A proposal on paper does not show that the measures were installed and operated as planned, nor does the existence of a pipe, fence or altered ground by itself prove that waste was discharged or identify its source.
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What approvals did Microsoft receive?
The environmental-clearance proposal is numbered SIA/TG/MIS/252577/2022. The filing categorises the development as a Category B2 building-and-construction project and marks public consultation as exempt. Minutes of the Telangana State Environment Impact Assessment Authority meeting of June 4, 2022, record approval for issue of environmental clearance. The SEIAA minutes and project application document those steps.
The Telangana State Pollution Control Board separately issued a Consent for Establishment to Microsoft Corporation India Pvt Ltd for the Mekaguda site on August 30, 2022. The consent order establishes that pollution-control permission was issued for establishment. It is not, by itself, a finding that construction or subsequent operations met every condition.
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These approvals answer specific regulatory questions; they do not settle all the issues residents raised. Environmental clearance and Consent for Establishment are distinct from a Consent for Operation, land-title and boundary records, lake demarcation, local access permissions and compliance inspections. The public-consultation exemption recorded in the application is relevant to questions about community participation, but does not alone show that the classification or exemption was unlawful.
Microsoft’s response
In its response reported at the time, Microsoft said it was committed to responsible data-centre development, local requirements and the necessary permits, and cited efforts around water and energy efficiency and support for local ecosystems. It denied the allegations and reportedly sought dismissal or withdrawal of the petition in September 2023. Data Center Dynamics reported the company’s position. That response dates from the original coverage and should not be treated as a fresh statement on the dispute.
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What evidence would resolve the dispute?
The dumping allegation would require evidence that identifies the material, where and when it was deposited, and who was responsible. Relevant records would include pollution-board inspection reports, water-quality tests from the lake and nearby borewells, and documented samples with a reliable chain of custody. The land claim requires a comparison of the approved site plan and surveyed parcel with revenue records, the lake’s legally demarcated boundary or full-tank level, and the location and status of the claimed cartway.
The available material does not provide those decisive records, a final High Court disposition, or a current inspection finding specific to Microsoft. Nor does it confirm the facility’s present construction or operational status. As of the latest information established by the cited material, the approvals are documented, the allegations were reported and denied, and the central factual dispute remains unresolved.
Quick Recap
Status at a glance
- Project: Microsoft HYD 01 proposed at Mekaguda, with 67,336 sq m of proposed built-up area.
- Approvals documented: SEIAA approval for issue of environmental clearance in June 2022; TSPCB Consent for Establishment dated August 30, 2022.
- Residents’ claims: Alleged lake dumping or encroachment, blocked access and environmental harm; reported petition by 57 residents or farmers in July 2023.
- Company position: Microsoft denied the claims and cited permits and compliance in statements reported at the time.
- Unresolved in the cited records: Whether dumping or encroachment occurred, the current court status, and whether the project became operational.
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