Telangana draws major data centre investments as Hyderabad expands

HYDERABAD: Telangana is emerging as a major destination for large-scale data centre and artificial intelligence infrastructure investments, with projects by Tata Consultancy Services (TCS), Amazon Web Services (AWS) and Microsoft strengthening Hyderabad’s position in India’s digital infrastructure landscape. TCS subsidiary HyperVault has announced plans to invest up to ₹70,000 crore in a 1-gigawatt artificial intelligence [...] HYDERABAD: Telangana is emerging as a major destination for large-scale data centre and artificial intelligence infrastructure investments, with projects by Tata Consultancy Services (TCS), Amazon Web Services (AWS) and Microsoft strengthening Hyderabad’s position in India’s digital infrastructure landscape. TCS subsidiary HyperVault has announced plans to invest up to ₹70,000 crore in a 1-gigawatt artificial intelligence data centre campus in Hyderabad. The facility, planned across 264 acres at Bharat Future City, will cater to AI companies, hyperscalers and global enterprises. TCS project adds scale to Hyderabad’s AI infrastructure push The HyperVault campus will be developed in phases and is expected to support high-density computing, liquid cooling and advanced GPU deployments for AI training and inference. The project is expected to generate several thousand direct and indirect jobs, with the Telangana government putting the figure at about 7,000. The project follows Telangana’s efforts to build Hyderabad into a hub for advanced computing and AI infrastructure. The state government said the campus would also support activity across power, cooling, networking, construction, engineering and operations. AWS and Microsoft expand Hyderabad’s cloud infrastructure AWS is also expanding its data centre operations in Hyderabad. The Telangana government announced in January 2025 that AWS would invest about ₹60,000 crore in the state, while Amazon said in 2026 that its Hyderabad expansion formed part of its wider investment in cloud and AI infrastructure in India. Microsoft has meanwhile made Hyderabad the location of its India South Central cloud region, which became generally available in August 2026. The company said the region has three availability zones and forms part of its $20.5-billion investment commitment to India’s cloud and AI future. Microsoft now operates four cloud regions in India, with Hyderabad adding to its existing presence in Pune, Mumbai and Chennai. The company has described the Hyderabad region as a foundation for scalable and sovereign-ready AI workloads. Hyderabad builds a larger hyperscale data centre pipeline The investment wave comes as Hyderabad’s data centre market expands rapidly. A Knight Frank India assessment cited by Telangana Today put the city’s live data centre capacity at 151.4 MW at the end of 2025, up from 60.9 MW in 2022. Its committed and early-stage project pipeline stood at about 1.9 GW, second only to Mumbai. The combination of hyperscale cloud infrastructure, AI computing capacity and large-scale private investment is widening Hyderabad’s technology base beyond conventional IT and IT-enabled services. The latest projects are also expected to create demand for skilled workers and supporting industries spanning data centre operations, engineering, power, cooling, networking and construction. Together, the developments underline Hyderabad’s growing role in India’s cloud and AI infrastructure market, although investment figures announced by individual companies cover different timeframes and geographies and should not be treated as a single Telangana-only investment total. ]]>