Hyderabad to Build India's First Data Center City: A 1500-Acre Mega Project

The Telangana government is planning to develop India's first dedicated Data Center City near Hyderabad to attract global tech giants. This 1500-acre project includes a strategic master plan for sustainable water supply and uninterrupted power for high-capacity facilities.

Hyderabad is poised to script a historic chapter in the realm of digital infrastructure and cutting-edge technology. The Telangana state government has launched a highly ambitious and far-reaching initiative to develop India's first dedicated Data Center City in the vicinity of Hyderabad. The primary vision behind this massive project is to attract the world's leading data center operators, cloud service providers, and major global tech giants to a centralized location. This move is designed to propel Telangana into the global digital spotlight, cementing its status as a powerhouse in the sector.

Project Scope and Land Allocation
According to official details provided by the Information Technology and Industries Department, approximately 1,500 acres of suitable land have been identified and earmarked for this extensive project in Alur village, located under the Chevella mandal. The Chief Minister of Telangana, A. Revanth Reddy, has prioritized this vision, directing high-ranking officials to draft a detailed project report (DPR) covering all infrastructure requirements, technical specifications, and development phases. The government is committed to executing the project within a strict, time-bound framework.

Hyderabad as a Global Tech Magnet
Geographically and strategically, Hyderabad has long been the primary choice for global tech companies and multinational corporations. The city already hosts operations for world-class IT giants such as Amazon and Microsoft, alongside specialized data center operators including CtrlS, CapitaLand, STT Global, NTT Data, Sify, and Tillman Global Holdings. Data indicates that currently, 150 to 200 megawatts of data center capacity is fully operational in the state. Furthermore, looking ahead to future demands, numerous major projects with a combined capacity of 5 GW (gigawatts) are currently in the pipeline.

Master Plan for Power and Water Challenges
The operation of data centers presents major technical challenges, specifically regarding the need for massive amounts of water and uninterrupted, reliable power. To address these issues, the Telangana government has formulated a robust master plan. To mitigate water scarcity, a public-private partnership (PPP) model will be utilized to supply treated wastewater to the industries. Through the 41 advanced sewage treatment plants (STPs) managed by the Hyderabad Metropolitan Water Supply and Sewerage Board, 530 million liters of clean water will be supplied daily to industrial hubs such as Chandanvelly and Bharat Future City. Additionally, to cater to the high electricity demand, the government is actively exploring policies to provide an open access power supply to these companies.

Transforming Alur and Chandanvelly into Investment Hubs
Owing to its proximity to the Hyderabad International Airport, seamless connectivity via the Outer Ring Road, and the availability of strong infrastructure, areas like Alur, Chandanvelly, and Fab City are ready to emerge as the largest and most secure investment hubs for global entities. Experts anticipate that once this data center city becomes operational, it will not only attract billions of dollars in foreign direct investment but also generate significant opportunities for direct and indirect employment for thousands of local youth.

What this means for you
Across India: India's global standing in the digital sector will strengthen, attracting more tech firms to invest in the country.

In Hyderabad: Thousands of direct and indirect job opportunities will be created for local youth, while the city's real estate and industrial development will see significant acceleration.

Questions & Answers

1. What is the main objective of the Data Center City in Hyderabad?
The main goal of this mega project is to bring together major global data center operators, cloud service providers, and tech giants to one location, aiming to make Telangana a global digital powerhouse.

2. How much land will this Data Center City cover?
This massive Data Center City will be developed across approximately 1,500 acres of land, which has been identified in Alur village of the Chevella mandal.

3. How will the government meet the high demand for water?
Under a public-private partnership model, the government will supply 530 million liters of treated wastewater daily to industrial hubs from 41 sewage treatment plants.

4. What is the currently operational data center capacity in Hyderabad?
Hyderabad currently has 150 to 200 megawatts of data center capacity that is fully operational.

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