Social media platforms are buzzing after the Telangana government announced plans for an AI-based data center in Hyderabad. Citizens, tech professionals, and entrepreneurs have been discussing the potential impact of the project on platforms like X and LinkedIn. Many have welcomed it as a major boost to employment, digital infrastructure, and Hyderabad’s global technology reputation, calling the investment a milestone for the city’s AI ambitions.

At the same time, online users have expressed cautious optimism. Several commentators noted that the project is still at the MoU stage and emphasized the need for clear timelines, robust infrastructure, and sustainable power and water supply to ensure successful implementation.

The AI-ready facility is proposed in Bharat Future City and aims to accelerate artificial intelligence adoption, strengthen digital infrastructure, and generate thousands of jobs. The project follows a Memorandum of Understanding signed between the Telangana government and UPC Volt at the World Economic Forum in Davos, Switzerland. The facility is expected to have a capacity of 100 megawatts with an estimated investment of around Rs 5,000 crore over five years.

Officials said the project could create more than 3,000 direct and indirect jobs during the construction phase and over 800 jobs once operational. UPC Volt, a joint venture between Netherlands-based UPC Renewables Group and VOLT Data Centers, is known for energy-efficient, high-performance data infrastructure and plans the facility to meet the growing demand for AI, cloud services, and data-driven industries.

The MoU was announced during the Telangana Rising delegation’s three-day Davos visit, led by Chief Minister Revanth Reddy, which concluded on January 22. The delegation also signed multiple agreements in sectors including energy, manufacturing, and global capability centers, marking Hyderabad’s continued push toward becoming a global digital hub.