Hyderabad Emerges as a Leading Data Centre Hub in India
Hyderabad is rising as a pivotal AI-driven data centre hub in India, witnessing significant live capacity growth and major corporate investments which underscore its potential for global tech players.
Highlights
- •Hyderabad's Live Data Centre Capacity has more than doubled from 60.9 MW to 151.4 MW by the end of 2025, with AWS holding a market share of 46% in live IT capacity.
- •Telangana's plans for strong AI data centre incentives drive strategic positioning against expensive coastal alternatives.
- •Hyperscalers like Microsoft and AWS are key contributors to the growing data centre footprint in Hyderabad.
- •Data Centre Demand is being fueled by global workloads, sovereign data storage requirements, and cloud adoption trends.
Hyderabad, the capital of Telangana, is rapidly establishing itself as one of India's premier data centre destinations. A report by Knight Frank India indicates a significant expansion in live capacity from 60.9 MW to 151.4 MW by the end of 2025. This growth is underscored by committed and early-stage projects amounting to 1.9 GW, placing Hyderabad second only to Mumbai.
The strong pull towards large, campus-scale deployments
Another key factor driving the market's growth is Hyderabad's natural disaster-resilient geography. Major players such as NTT Data and AdaniConneX are expanding their data centre presence in the region, contributing significantly to the growth narrative. Key inflection points include the upcoming launch of Microsoft's India South Central data centre region here in 2026, alongside Amazon Web Services' (AWS) existing operations which hold a robust 46% market share in live IT capacity.
Apart from these global hyperscalers, Oracle is also expanding its cloud services through colocation while planning to launch a data centre in Hyderabad to bolster its Indian presence. This collective presence of major tech players confirms Hyderabad's potential as a significant regional hub for data centres and digital infrastructure.
Data Centre Expansion Overview
As of 2025, the city is witnessing a surge in IT/ITeS sector with take-up levels hitting record highs. Moreover, global AI workloads, significant investments by hyperscalers, mounting demands for sovereign data storage, and broader cloud adoptions are collectively driving up demand for high-density digital infrastructure.
The figures from 2025 show a growth trajectory where live capacity stands at 151.4 MW, with an additional 361.6 MW of new capacity added throughout the year. Such expansion is indicative of Hyderabad's strategic position as India's data centre landscape evolves.
