Hyderabad emerges as global data centre hub

Why Hyd is Data Centre Friendly?

1. Three availability zones that meet India's regulatory and seismic requirements.
2. Robust power infrastructure with expanding renewable energy options.
3. Strong cloud services ecosystem and growing enterprise workloads.
4. Availability of large land parcels for hyperscale campuses.
5. Thriving IT and technology talent ecosystem.
6. Supportive state government policies encouraging digital infrastructure investments.

metro india news  I hyderabad

The city has firmly established itself as one of the world's fastest-growing data centre destinations, earning recognition in the Knight Frank Global Data Centre Atlas 2026. The report, which evaluated 36 leading data centre markets across North America, Europe, Asia-Pacific, the Middle East and Africa, highlights the city's rapid rise as a preferred destination for digital infrastructure investments.

According to the report, Hyderabad ranks 27th globally in operational data centre capacity and 19th in development pipeline, underscoring its growing importance in India's digital economy. The city currently has 151 MW of operational IT capacity, while its development pipeline exceeds 2.2 GW, indicating strong investor confidence and significant expansion plans. Industry estimates suggest Hyderabad's operational capacity could reach around 380 MW by 2027, nearly doubling within a few years.

For several years, Mumbai has dominated India's data centre landscape, but Hyderabad is now emerging as the country's next major growth hub. Supported by proactive government policies, abundant land availability, reliable power infrastructure and a thriving technology ecosystem, the city is attracting some of the world's leading data centre developers and cloud service providers.

One of the biggest projects underway is CtrlS' 612 MW data centre park at Chandanvelly Industrial Park, where 250 MW of power has already been secured for the first phase. In another major initiative, NTT Data, Neysa Networks and the Telangana government are jointly developing a 400 MW AI-focused data centre cluster, designed to support up to 25,000 GPUs to meet the growing demand for artificial intelligence and high-performance computing.

Meanwhile, Nxtra by Airtel is constructing its largest facility in Hyderabad—a 200 MW campus spread across 40 acres—further strengthening the city's credentials as a digital infrastructure powerhouse. Most of these large-scale developments are taking shape in newly emerging technology parks on Hyderabad's outskirts, where land availability and power connectivity offer significant advantages.

With increasing cloud adoption, AI-driven computing requirements and enterprise digital transformation, Hyderabad is expected to witness sustained demand for advanced data centre infrastructure. Industry experts believe the city is well-positioned to become one of Asia's most important digital infrastructure hubs over the coming decade.