Telangana Targets 5 GW Hyperscale Data Centre Capacity by 2029

Telangana has set a target of 5 GW hyperscale data centre capacity by 2029. The state has linked this target with an estimated $30 billion in potential investment across artificial intelligence and digital infrastructure.

Data Centre Capacity in Telangana

As of 24 September 2026, more than 2.5 GW of data centre capacity in Telangana was either operational or under development. Major global and Indian operators are involved in projects across Hyderabad and other locations in the state.

Data centre capacity is usually measured in megawatts or gigawatts of IT load. Hyperscale data centres are large facilities built for cloud computing, storage, and high-volume digital services.

Major Investment Commitments

Microsoft opened its India South Central data centre region in Telangana on 24 September 2026. The region is part of Microsoft’s $20.5 billion investment commitment to India by 2029.

On 5 September 2026, Telangana announced a ₹70,000 crore investment by Tata Group, TCS, and HyperVault for an AI data centre campus in Hyderabad. The proposed campus is planned with up to 1 GW capacity and a target inauguration date of 2 June 2028.

Fortune Hospitality & Infra has planned a 170-acre hyperscale AI data centre park in Telangana with an initial investment of ₹60,000 crore. The project is designed for 1,200-1,600 MW IT load.

AI Infrastructure and State Initiatives

New projects in Telangana are being designed for AI-scale compute, high-density GPUs, hyperscale cloud, and advanced cooling systems. These features differ from conventional enterprise data centre requirements.

The Telangana Data Exchange is planned to provide sovereign AI-grade computing, AI-ready datasets, subsidised GPU access, and sandbox tools. ICAN, Telangana’s AI innovation entity, aims to place the state among the world’s top 20 AI hubs by 2035.

Important Facts for Exams

• Hyderabad is one of India’s major data centre hubs because of its connectivity, power availability, and technology ecosystem.
• Hyperscale data centres are used by cloud service providers, large technology firms, and AI computing platforms.
• GPU stands for Graphics Processing Unit, and it is widely used in artificial intelligence and machine learning workloads.
• Data centre capacity is often expressed in MW or GW of IT load, which measures the power available for computing equipment.

Global Operators in Telangana

Microsoft, AWS, Iron Mountain, CtrlS, Sify, TCL, NTT DATA, and CapitaLand are among the companies investing in large-scale compute and data centre infrastructure in Telangana. By the end of 2030, Hyderabad and other emerging Indian hubs are projected to reach 1.1 GW of data centre capacity.