TG's Incentives Bringing Data Centres to Hyderabad: Report
Live capacity more than doubled to 151.4 MW as of 2005 from 60.9 MW in 2022
Hyderabad: Hyderabad has rapidly emerged as one of India’s fastest-growing data centre markets. The city’s live capacity has more than doubled from 60.9 MW in 2022 to 151.4 MW by end-2025. Further, the committed and early-stage projects aggregate 1.9 GW, second only to Mumbai. This is driven by operator preference for large, campus-scale deployments, said Knight Frank India in a report.
Telangana's ambition to become a global AI data centre hub through incentives for components such as high-density graphics processing units (GPUs), large-scale training compute, and liquid cooling is positioning Hyderabad as a strategic alternative to other, more expensive coastal hubs in the country, the report said.
City’s disaster-safe geography is a key site-selection advantage, with NTT and AdaniConneX aggressively scaling their data centre footprints in the city, it said.
A key inflection in the market is the growing presence of global hyperscalers. Microsoft is launching its India South Central data centre region in Hyderabad in 2026, while AWS operates three availability zones in the city, anchoring hyperscale demand. AWS holds 46 per cent market share of live IT capacity in the city. Oracle operates its cloud services in Hyderabad via a colocation-based deployment but has announced plans to launch a data centre in Hyderabad to expand its data centre capacity in India. This presence of global cloud players reinforces Hyderabad’s emergence as a credible hyperscale hub, the report said.
While historically driven by IT/ITeS, the city witnessed record-high take up of 19.2 MW in 2024, signalling a shift toward hyperscale dominance.
India’s data centre capacity across the country’s seven primary markets surpassed 1.6 GW by the end of 2025. India added 371.5 MW of live capacity in 2025 following a substantial 361.6 MW addition in 2024, it said.
“AI-led workloads, hyperscaler investments, sovereign data requirements and cloud adoption are collectively accelerating demand for high-density digital infrastructure across India,” said Shishir Baijal, CMD, Knight Frank India.
As of 2025, data centres live capacity hits 151.4 MW
32.7 MW under construction
633.5 MW committed
1,209 MW in early stages
