Telangana targets 5 GW data centre capacity by 2029 as Microsoft opens Hyderabad cloud region
Telangana is targeting 5 GW of data centre capacity by 2029, with around US$30 billion in potential investment across the State’s broader artificial intelligence (AI) and digital infrastructure ecosystem, Telangana IT and Industries Minister D. Sridhar Babu said.
The announcement came as Microsoft’s India South Central data centre region was inaugurated at Chandanvelly in Rangareddy district on September 24. The new facility is Microsoft’s fourth cloud region in India and is designed to support growing demand for cloud computing and AI workloads.
Telangana currently has more than 2.5 GW of data centre capacity either operational or under development, with investments by major global and Indian operators. The State’s 5 GW target represents a significant expansion of its planned digital infrastructure footprint.
Sridhar Babu said Microsoft’s investment would contribute to Telangana’s efforts to strengthen its infrastructure, talent base, academic ecosystem and innovation capabilities. Hyderabad already hosts more than 500 Global Capability Centres, according to the State government.
Microsoft said the India South Central region features a three-zone architecture designed for resilience and long-term capacity expansion. The company has also positioned Hyderabad as a strategic hub for Asia and the Global South as additional Azure and AI capabilities are rolled out.
The facility has been designed with cooling systems that Microsoft said use effectively zero water for cooling. The company is also supporting groundwater recharge and rainwater harvesting initiatives in communities around the Hyderabad data centre region.
Microsoft has further partnered with the Telangana government, IIIT Hyderabad, Young India Skills University and Don Bosco Tech Society on a 600-hour Data Center Academy programme aimed at preparing students for careers in data centre operations and infrastructure management.
