Telangana targets 5 GW data centre capacity by 2029

Hyderabad: Telangana is targeting 5 GW of data centre capacity by 2029, as the state looks to position Hyderabad as a major hub for AI and hyperscale infrastructure, with the government estimating around $30 billion in potential investment across the broader AI and digital infrastructure ecosystem.

The state currently has 300 MW of data centre capacity already operational, while another 2 GW is under development. The capacity spans global and Indian operators including Microsoft, AWS, Iron Mountain, CtrlS, Sify, TCL, NTT DATA and CapitaLand. The expansion is increasingly being driven by demand for AI-scale computing, high-density GPUs, hyperscale cloud infrastructure and advanced cooling, rather than conventional enterprise data centres, the government said.

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The 5 GW target was outlined by Telangana IT minister D Sridhar Babu at the inauguration of Microsoft's India South Central datacentre region in Hyderabad on Thursday. The minister said the state aims to build on its growing hyperscale and AI infrastructure base to attract around $30 billion in investment.

Telangana's push to expand its data centre footprint also builds on its longer-term plan to create a dedicated 1,500-acre data centre city in Aloor on the outskirts of Hyderabad.

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More recently, TCS subsidiary HyperVault secured 264 acres in Hyderabad's Future City for a 1 GW AI data centre campus, with the company and its partners expected to invest up to Rs 70,000 crore. The facility is being designed for high-density GPU deployments serving frontier AI companies and hyperscalers.