en.Wedoany.com Reported - India's Telangana is advancing its first dedicated data center city, located in Aloor village, Chevella division, spanning 1,500 acres, approximately 55 kilometers from Hyderabad, the primary destination for current colocation and hyperscale facilities.
In June, Telangana Chief Minister A. Revanth Reddy directed relevant state government departments to prepare a detailed report on water, electricity, and connectivity requirements for the project. According to the Times of India, the project site has been finalized. This data center city is just one of several planned projects in the region; based on signed memorandums of understanding, Telangana plans to build a total data center capacity of 11 gigawatts, including an MoU with UPC-Volt for a 100-megawatt artificial intelligence data center in Bharat Future City, Hyderabad, and MoUs with NTT Data and Neysa Networks for AI data center clusters in the city.
To address the strain data centers place on utilities, the state government has launched a project to supply treated wastewater to industrial hubs. Implemented under a public-private partnership model, the project will build two pipelines to deliver treated water to data centers in Chandanvelly and Bharat Future City.
By fostering a favorable environment, the Telangana government is encouraging long-term growth in this market. According to Mordor Intelligence, the Hyderabad data center market size is expected to grow from 859 megawatts of installed IT load in 2025 to approximately 4,640.8 megawatts by 2032. By investing in other regions of the state, the government aims to attract more market participants and achieve its goal of positioning Telangana as a digital infrastructure hub.
This week, Reddy met with Bharti Enterprises Chairman Sunil Bharti Mittal, discussing accelerating the Chandanvelly data center project and exploring the possibility of building data center and AI infrastructure parks in the state. Additionally, Reddy stated that Airtel should expand its digital, cloud, cybersecurity, and AI operations in Hyderabad. Mittal praised the Telangana government's efforts to encourage forward-looking initiatives through policy decisions and stated that Bharti Enterprises is committed to expanding data center capacity and fiber connectivity in the state, a move that signals the state is worth investing in.
The prospect of the data center city could be key to attracting more data center operators and infrastructure providers to other parts of Telangana. Achieving this goal depends on continued government support in resources such as land, water, and electricity. If progress proceeds smoothly, the state is poised to become a significant part of India's digital infrastructure economy.
