Families in one of Mumbai's most polluted neighbourhoods are paying the price for the city's booming datacentre industry, with coal plants that were scheduled to close remaining operational to power energy-hungry server farms.
The Human Cost of Mumbai's Energy Demand
Every day, 36-year-old Kiran Kasbe navigates his rickshaw taxi through the thick smog of Mahul, a neighbourhood on Mumbai's eastern seafront where the air carries a heavy stench of oil and smoke even behind closed windows. The pollution isn't just unpleasant—it's life-threatening.
Earlier this year, doctors discovered three tumours in the brain of Kasbe's 54-year-old mother. While the exact cause remains uncertain, studies consistently show that people living near coal plants face significantly higher risks of developing cancer. The residents of Mahul live just a few hundred metres from one such facility.
"We are not the only ones facing health challenges in the area," Kasbe revealed. "It's all covered with filth."
The situation should have improved. Two coal plants operated by Indian multinationals Tata Group and Adani were due to close last year as part of government efforts to reduce emissions. However, in late 2023, these decisions were reversed after Tata successfully argued that Mumbai's electricity demand was rising too rapidly to abandon coal power.
The Datacentre Boom Driving Coal Dependency
An investigation by SourceMaterial and the Guardian has uncovered that the single biggest factor preventing Mumbai from ending its coal dependence is the explosive growth of energy-intensive datacentres.
Leaked records reveal the substantial presence of Amazon, the world's largest datacentre operator, in Mumbai. While Amazon's website lists three "availability zones" in the metropolitan area—defined as one or more datacentres—internal documents from last year show the company actually used 16 facilities across the city.
As India positions itself as an artificial intelligence hub, the datacentre expansion is creating direct conflict between energy demands and climate commitments, according to Bhaskar Chakravorti, who researches technology's societal impact at Tufts University.
"I'm not surprised they're falling behind their green transition commitments, especially with the demand growing exponentially," he commented regarding the Indian government's environmental goals.
Amazon spokesperson Kylee Yonas defended the company's environmental record, stating: "On the contrary – Amazon is one of the largest corporate investors in renewable energy in India, and we've supported 53 solar and wind projects in the country capable of generating over 4 million megawatt hours of clean energy annually."
However, critics argue the company isn't taking sufficient responsibility for prolonging the use of highly polluting energy sources. Eliza Pan, speaking for Amazon Employees for Climate Justice, accused the company of "using the shiny thing of AI to distract from the fact that it's building a dirty energy empire."
Life in Mumbai's 'Toxic Hell'
Mahul, originally a fishing village, now houses tens of thousands of people relocated from slum clearances elsewhere in Mumbai. Kasbe and his mother moved there in 2018 after their home in Vidyavihar was bulldozed. Before the relocation, his mother had been healthy, but her condition deteriorated rapidly until she received her brain cancer diagnosis.
Local resident Gajanan Tandle confirmed that pollution-related illnesses are widespread in the community. "There are so many cases of skin and eye irritation, cancer, asthma, TB and more, and no assistance from the government," he reported.
Another resident, Santosh Jadhav, has been lobbying authorities to relocate people away from Mahul. "Everything is contaminated. We are tired of fighting for a decent means of living," he expressed. "It's hell for us here."
The scale of Amazon's energy consumption in Mumbai is substantial. According to leaked data, the company's Mumbai colocation datacentres used 624,518 megawatt hours of electricity in 2023—enough to power more than 400,000 Indian households for a year.
Industry forecasts suggest India is poised to become the second-largest consumer of datacentre electricity in the Asia-Pacific region, surpassing Japan and Australia. By 2030, datacentres are projected to consume a third of Mumbai's total energy.
The Pollution Crisis Deepens
In response to soaring power demands, the Maharashtra state government has extended the operational life of Tata's coal plant in Mahul by at least five years. Simultaneously, it postponed the shutdown of a 500-megawatt station operated by Adani Group north of the city.
When Tata petitioned the state energy board for the extension, the company identified increased energy demand from datacentres as the single most significant factor. Adani similarly noted that most anticipated new demand in the five years following their plant's scheduled closure would come from datacentres.
The power stations represent just part of Mahul's pollution problem. The area also hosts three refineries and 16 chemical factories, leading a 2019 report by India's Centre for Policy Studies to describe the neighbourhood as a "toxic hell."
According to Raj Lal, chief air quality scientist at the World Emission Network, the Tata plant—opened in 1984 and subject to less stringent emissions regulations than newer facilities—represents "one of the key sources of air pollution in Mumbai." Research from the Centre for Research on Energy and Clean Air indicates it contributes nearly a third of local PM2.5 pollution.
Shripad Dharmadhikary, founder of environmental organisation Manthan Adhyayan Kendra, warned that toxic heavy metals in coal ash from the plant are likely causing "respiratory diseases, kidney issues, skin problems, cardiac issues" among local residents.
Even with the Tata plant continuing operations, Mumbai's power grid struggles to meet surging demand. Documents show that Amazon's colocation datacentres in the city have purchased 41 diesel generators as backup against blackouts and are seeking approval to install additional units.
A August report by the Center for Study of Science, Technology and Policy identified diesel generators as a major source of air pollution in the region. Swagata Dey, an air quality specialist at the organisation, asserted that datacentre operators should be legally required to power their facilities with pollution-free solar electricity.
One particular Amazon site, located just across Thane Creek from Mahul, already hosts 14 generators, with permission granted earlier this year for a partner to install 12 more.
As Mumbai's residents continue breathing polluted air while global tech giants expand their operations, the conflict between economic development and public health grows increasingly stark, with families like the Kasbes caught in the middle.
