Telangana Aims for 5 GW of Data Centre Capacity by 2029 as Microsoft's South Central Cloud Region Launches in Hyderabad

Key facts

• Telangana is targeting 5 GW of data centre capacity by 2029, with around $30 billion in potential investment across the AI and digital infrastructure ecosystem.
• The State has over 2.5 GW of data-centre capacity operational or under development through operators including Microsoft, AWS, Iron Mountain, CtrlS, Sify, and NTT DATA.
• Microsoft's South Central Cloud Region was inaugurated in Hyderabad by Telangana IT and Industries Minister D Sridhar Babu on September 24, 2026, as part of Microsoft's $20.5-billion cloud and data centre expansion plan for India.
• The new region comprises three Availability Zones with a resilient design aligned to India's regulatory and seismic-zone requirements.
• The region operates with effectively zero water use for cooling, and by June 2026 the Elikatta groundwater-recharge programme had added about five million litres of recharge capacity.
• Microsoft partnered with IIIT Hyderabad, Young India Skills University, the Government of Telangana, and Don Bosco Tech Society for a 600-hour programme training students for datacentre operations careers.