Hyderabad is expected to attract between 8 and 10 gigawatts (GW) of data centre capacity in the coming years. The effort is part of Telangana’s efforts to position itself as one of India’s largest digital infrastructure hubs.
Telangana Special Chief Secretary for Energy Navin Mittal said that the state government is preparing to support large-scale data centre investments through reliable, scalable power infrastructure.
Telangana currently accounts for nearly 1 GW of installed data centre capacity, making it one of the country’s fastest-growing markets for digital infrastructure.
The state expects the next phase of growth to be concentrated in and around Hyderabad, driven by rising demand for artificial intelligence (AI), cloud computing, data localisation and hyperscale facilities.
Also Read: India Becomes APAC’s Second Largest AI Data Centre Hub With 1.6 GW Capacity
Telangana Pitches Reliable and Clean Energy for Data Centre Expansion
Telangana’s energy department is ready to provide uninterrupted power to upcoming facilities and is working to ensure that energy availability does not become a bottleneck for investments.
According to the state government, Telangana’s Clean Green Energy Policy 2025 is being positioned as a key incentive framework for industries and energy equipment manufacturers. The policy can help lower operational costs while supporting long-term industrial expansion.
The state has been actively promoting clean energy adoption alongside industrial growth, with policymakers highlighting a reliable, cost-effective and sustainable power supply as a major advantage for investors evaluating data centre locations in India.
The push comes as governments across India compete to attract investments in AI infrastructure, cloud services, semiconductor ecosystems, and digital economy projects.
Also Read: India’s Data Centre Industry to Deploy Up to 700,000 GPUs by 2030
Lower Costs Draw Global Hyperscalers, Industry Flags Talent Gap
Industry executives said India continues to attract global hyperscalers due to comparatively lower construction and operating costs.
According to industry estimates, building data centre infrastructure in India can cost significantly less than in the United States. Industry experts noted that a one-megawatt facility in the US can require an investment of around $14 million, while a similar capacity in India can be developed at nearly half that cost.
The cost advantage, combined with India’s rapidly growing digital consumption, is encouraging global technology firms to expand their disaster recovery, cloud and AI infrastructure footprint in the country.
The latest projections come as Hyderabad strengthens its position alongside Mumbai, Chennai and Delhi-NCR in India’s data centre market, with demand increasingly being driven by AI workloads, cloud adoption and enterprise digitisation.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
