Hyderabad, 25 June
Telangana Plans India’s First Dedicated Data Centre City Near Hyderabad
In a major step towards strengthening Telangana‘s position as a leading technology and digital infrastructure hub, the state government is planning to develop India’s first dedicated data centre city near Hyderabad.
The ambitious project is proposed on approximately 1,500 acres of land at Aloor village in Chevella mandal, located on the outskirts of Hyderabad. The initiative aims to attract global data centre operators and technology companies by offering world-class infrastructure, including reliable power supply, water availability, high-speed connectivity, and strategic location advantages.
Government Identifies Land for Mega Project
The Telangana government’s IT and Industries Department has already identified the required land for the proposed data centre city. Chief Minister A Revanth Reddy has directed officials to prepare a detailed project report outlining infrastructure requirements, investment opportunities, and future expansion plans.
The project is expected to boost Telangana’s digital economy while creating thousands of direct and indirect employment opportunities.
Hyderabad Emerging as a Major Data Centre Destination
Hyderabad has rapidly emerged as one of India’s preferred destinations for data centre investments due to its strong infrastructure, business-friendly policies, and availability of skilled talent.
Several global technology companies and data centre operators have already established facilities in and around the city, including:
- Amazon
- Microsoft
- CtrlS
- CapitaLand
- STT Global Data Centres
- NTT Data
- Sify Technologies
- Tillman Global Holdings
Industry experts believe the proposed data centre city will further strengthen Hyderabad’s position as a key digital infrastructure hub in South Asia. India’s First Dedicated Data Centre City Near Hyderabad.
Large-Scale Capacity Expansion Underway
According to official estimates, Telangana currently hosts operational data centres with capacities ranging between 150 MW and 200 MW.
Additionally, projects with a combined capacity of nearly 5 Gigawatts (GW) are in various stages of planning and development, highlighting the state’s growing importance in the data centre sector.
Sustainable Water Supply Through Treated Wastewater
Since data centres require significant amounts of water for cooling systems, the Telangana government is planning a sustainable solution by supplying treated wastewater to industrial clusters through a Public-Private Partnership (PPP) model.
The Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) currently operates 41 sewage treatment plants (STPs) with a combined treatment capacity of approximately 1,750 million litres per day (MLD).
Under the proposed plan, nearly 530 million litres of treated water per day could be supplied to industrial and technology clusters, ensuring sustainable operations while conserving freshwater resources.
Open Access Power for Data Centre Companies
Reliable electricity remains one of the most critical requirements for data centre operations. To support future investments, the Telangana government is considering providing open access power to companies operating within the proposed data centre city.
This move is expected to ensure uninterrupted power supply and improve operational efficiency for large-scale data centre facilities.
Key Data Centre Clusters Around Hyderabad
Several regions around Hyderabad have already emerged as attractive destinations for data centre investments due to land availability, infrastructure readiness, and proximity to the airport.
Major emerging clusters include:
- Chandanvelly
- Bharat Future City
- Fab City
- Chevella Region
These locations are expected to play a significant role in Telangana’s long-term digital infrastructure strategy.
Telangana’s Vision for a Digital Future
The proposed data centre city reflects Telangana’s broader vision of becoming a global technology and innovation hub. By creating a dedicated ecosystem for data centres, the state aims to attract significant domestic and international investments, support cloud computing infrastructure, and strengthen India’s digital economy.
If implemented successfully, the project could become a landmark development and position Telangana as the home of India’s first dedicated data centre city.
Key Highlights
- India’s first dedicated data centre city planned in Telangana
- Project proposed on 1,500 acres near Hyderabad
- Location identified at Aloor village in Chevella mandal
- Global companies expected to invest in the project
- Sustainable water supply planned using treated wastewater
- Open access power under consideration
- Hyderabad strengthens its position as a leading data centre hub
- Data centre projects worth 5 GW capacity in pipeline