Telangana is rapidly turning into one of India’s key destinations for AI infrastructure, with two major data centre projects potentially bringing more than ₹1.3 lakh crore in investment to the state.
Fortune Hospitality & Infra LLP has proposed a ₹60,000 crore hyperscale AI data centre park in Kandukur Mandal in Ranga Reddy district, while HyperVault, a subsidiary of Tata Consultancy Services (TCS), is planning an AI-focused campus in Hyderabad with an investment of up to ₹70,000 crore. Together, the projects point to the growing scale of infrastructure needed to support artificial intelligence, cloud computing and high-performance computing in India.
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What is planned at Fortune’s AI data centre park?
Fortune Hospitality & Infra LLP plans to develop the data centre park across 170 acres in Kandukur Mandal, within the Hyderabad Metropolitan Region. The project will be developed through its project special purpose vehicle, Sudeeksha Estates LLP, in partnership with global data centre operators and hyperscalers.
The proposed campus is expected to support between 1,200 MW and 1,600 MW of IT load, divided across four independently operable hyperscale modules. Each module could support up to 400 MW. The infrastructure is intended for a mix of AI workloads, cloud services, colocation and high-performance computing.
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The scale of the proposed power infrastructure is equally significant. The project has a sanctioned power capacity of 2,000 MVA from TGTRANSCO, with 400 MVA scheduled to be available by December 2027. The entire 2,000 MVA requirement is targeted for December 2034.
The site is also located less than 500 metres from POWERGRID’s 765/400 kV infrastructure and is adjacent to TGTRANSCO’s 400/220 kV substations, giving the project access to a substantial power network.
When will the ₹60,000 crore project be built?
The Fortune project is planned in phases, with the first phase targeted for commissioning by December 2027. The initial investment is estimated at ₹60,000 crore. At full build-out, however, cumulative investment could rise to around ₹1 lakh crore, depending on the development of the campus and future demand.
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What is TCS subsidiary HyperVault building in Hyderabad?
The second major project comes from HyperVault, a subsidiary of TCS. HyperVault has acquired 264 acres in Hyderabad for an AI data centre campus that could involve investment of up to ₹70,000 crore. The planned facility is expected to provide computing capacity of up to 1 GW and will target global AI companies and hyperscalers.
Unlike a conventional data centre designed primarily for enterprise workloads, the HyperVault campus is being designed for the increasingly demanding requirements of AI computing. This includes high-density infrastructure and liquid-cooled systems needed to support specialised computing workloads. The campus will be developed in phases, with the pace of expansion expected to depend on customer demand and changes in AI computing requirements.
Why are these AI data centres important?
AI models require far more computing power than many traditional digital services. Training and running large AI systems can require huge clusters of specialised processors, along with substantial electricity, cooling and network infrastructure. That makes the availability of land and power increasingly important for companies looking to build AI infrastructure.
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This is where Telangana’s emerging data centre ecosystem could become significant. Hyderabad already has a large technology workforce and established digital infrastructure, while these projects would add dedicated capacity for some of the most compute-intensive applications.
TCS CEO and Managing Director K Krithivasan has described the HyperVault development as part of the company’s broader “Infrastructure-to-Intelligence” strategy, combining AI-ready infrastructure with TCS’ cloud, AI and enterprise technology capabilities.
How will the projects address power and water requirements?
The scale of these campuses also raises an important question: how will they manage their resource requirements? Fortune’s proposed data centre park plans to use treated greywater for cooling and other non-potable applications. It also proposes water-efficient closed-loop cooling systems, along with water recycling and monitoring.
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The project is also looking at long-term solar and wind power purchase agreements, including options for round-the-clock renewable energy. HyperVault has similarly said its Hyderabad campus will incorporate green energy and water-neutral design principles.
Could Hyderabad become an AI infrastructure hub?
The two projects are still at different stages of development, but their proposed scale is difficult to overlook. Fortune’s project could eventually support up to 1,600 MW of IT load, while HyperVault’s campus is planned for up to 1 GW of computing capacity. Together, the proposed investments could reach more than ₹1.3 lakh crore.
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For Telangana, the opportunity goes beyond constructing large buildings filled with servers. AI data centres can become the physical foundation for cloud platforms, AI companies, hyperscalers and enterprises that need access to large amounts of computing power.
As demand for generative AI and other compute-heavy applications grows, the competition may increasingly be about who can provide reliable power, land, cooling, connectivity and renewable energy at the right scale. Telangana is now positioning itself to be part of that competition.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future.
