Paytm founder Vijay Shekhar Sharma has criticized protests against data centers as a mindset that could hinder India’s technological rise. His comments come amid growing local backlash against the $15 billion Google-Adani project in Visakhapatnam over water and environmental concerns. Meanwhile, Paytm has reported a Q1 FY27 profit of ₹220 crore, with shares trading near 52-week highs.
Paytm founder Vijay Shekhar Sharma has publicly criticized the growing opposition to artificial intelligence and data center infrastructure in India, labeling such resistance a "woke mindset" that threatens to impede the nation's technological progress. His remarks highlight a widening gap between India's ambitions to become a global AI hub and the local environmental concerns that are increasingly challenging large-scale infrastructure projects.
These comments follow mounting backlash against a major $15 billion data center project planned by Google in partnership with the Adani Group in Visakhapatnam. Local activists and residents have launched protests against the facility, citing worries that the large-scale data center could strain local water resources and negatively impact the nearby Kambalakonda Wildlife Sanctuary. Banners and slogans at these protests have emphasized concerns over resource management, contrasting the need for digital infrastructure with local access to water.
The Andhra Pradesh government has pushed back against these claims, asserting that the project is essential for regional economic growth and that water allocation for the facility will not divert resources intended for residential or rural use. On the global stage, major technology companies are also facing intense scrutiny regarding their water and energy consumption. Many firms are now looking at advanced, recirculating cooling systems to minimize their environmental footprint, a necessity if they are to gain community approval for new server farms.
For investors, this debate over infrastructure projects underscores the evolving nature of execution risks in India. Large-scale developments are now subject to higher levels of environmental and social due diligence, which can influence project timelines and capital allocation.
In the context of the broader digital economy, Paytm (One 97 Communications) itself has recently navigated a significant operational shift. The company has shown improved financial health, reporting a net profit of ₹220 crore for the first quarter of fiscal year 2027, following a turnaround that saw the firm achieve a full-year profit of ₹552 crore in fiscal 2026. The stock has performed strongly in recent sessions, trading near ₹1,429, which is close to its 52-week high levels.
Going forward, the key monitorable for investors will be whether major infrastructure projects like the Visakhapatnam data center can successfully navigate local regulatory and environmental hurdles without incurring significant delays. Additionally, as companies continue to scale, their ability to manage community relations alongside their technical expansions will remain a critical factor in maintaining their operational pace.