Provision of advanced infrastructure to support the power requirements, setting up of a Data City as well as focus on harnessing renewable energy are measures Telangana government has decided to focus on amid the emergence of Hyderabad as a preferred destination for firms setting up data centres.
The proposed Data City will be established near Hyderabad to facilitate world-class infrastructure and with an eye on future needs of data centres, highly placed sources said.
Chief Minister A. Revanth Reddy is spearheading the State’s drive to attract more data centre investments, especially AI-ready data centres. The government has been actively engaging in dialogue with major global corporations in pursuit of investment opportunities. Since January 2024, Telangana has attracted data centre projects entailing more than ₹1.42 lakh crore investments with total capacity addition of 5,189 MW.
The list does not include projects whose investments are yet to be disclosed, sources said.
Among the projects announced is the high-performance AI compute facility with a cumulative capacity of 20 petaflops or more, the Centre for Development of Advanced Computing (CDAC) announced at the Telangana Global AI Summit 2024. The government has already allotted 10 acres in the upcoming Artificial Intelligence (AI) City.
At the World Economic Forum (WEF) 2024 in Davos, Iron Mountain (previously Web Werks) announced ₹5,200 crore investment on 10 MW networking-heavy data centre in Hyderabad. The facility is set to start operations soon. After commissioning the 10 MW facility, the company plans to build a 100 MW hyperscale data centre in the Southwest part of the city, sources said.
American tech major Amazon Web Services (AWS) is investing in expansion of data centres in Hyderabad and committed ₹60,000 crore investment to add 1,200 MW capacity over the next few years. Yotta Technologies is expected to set up a 50 MW AI-GPU cloud data center with a total of 25,000 GPUs at Bharat Future City.
During WEF 2025, Blackstone and CtrlS Datacenters were among the companies that signed agreements with the State government for establishing data centres. Similarly, investment proposals of other companies, including ST Telemedia, Tillman Global Holdings, Aurum Equity Partners, Sify Technologies and NTT Data are making steady progress, sources said.
Published – August 21, 2025 08:52 pm IST
