The two Telugu states—Telangana and Andhra Pradesh—are rapidly transforming into the primary hubs for data centres and Artificial Intelligence (AI) infrastructure in India. Driven by aggressive state policies, vast land availability, robust power grids, and a massive technology ecosystem, the region is targeting over 15 Gigawatts (GW) of cumulative data centre capacity by 2030.
Telangana blazed the trail in India by rolling out its own Data Center Policy—it jumped in first, offering dual-grid power and cheaper renewable energy to lure big players. Andhra Pradesh followed with sector-specific incentives, including a jaw-dropping Rs 19,100 crore package for hyperscalers.
TG: Geography and Grid Reliability
Hyderabad stands out for its seismic stability—not something every coastal region can claim. As for Visakhapatnam (Vizag), the coastal landing station there connects directly to submarine cables that link East Asia and the Middle East. That’s a massive edge. AI workloads are devouring energy—far more than old-school data storage ever did. Both Telugu states are pushing solar and wind corridors to make sure these data centers stay green and have enough juice to keep growing.
Tech Scene and Talent Pool Readyness
Hyderabad’s legacy as an IT powerhouse—thanks to Cyberabad—and Vizag’s rise as an AI corridor means companies setting up shop don’t have to hunt for cloud or AI engineers. The talent’s already here.
Telangana aims to hit nearly 5 GW of capacity by 2030 and already runs more than 33 operational data centers, most clustered in HITEC City, Gachibowli, and the Financial District.
Major Ongoing and Completed Projects
AWS Expansion: AWS dominates here, holding 46% of the region’s live IT capacity, and it’s already building a Rs 60,000 crore hyperscale data center in Hyderabad’s Bharat Future City, planning to go live (first phase) in two years.
Microsoft India South Central Region: Microsoft’s “India South Central” region is taking shape in Hyderabad, with new nodes about to go online.
Local Hyperscalers: CtrlS (already running huge DC3 and DC4 sites), CapitaLand (building a 40 MW site), and Iron Mountain have all set up shop with deeply integrated workloads in the city.
Proposed and Future Projects
India’s First “Data Centre City”: Telangana has set aside 1,500 acres in Aloor village, Chevella mandal (near Hyderabad), planning a self-sustained town just for hyperscale data centers.
UPC-Volt AI Center: There’s an MoU to build a 100 MW AI-focused data center right inside Bharat Future City.
NTT Data & Neysa Networks: These two are collaborating on a project to set up an AI data center cluster, designed to handle hefty GPU workloads.
AP: Emerging Giga-Scale Corridor
With a renewed push for investment, Andhra Pradesh is crafting a 100-kilometer AI infrastructure corridor around Vizag, aiming to deliver 6 GW of capacity.
Major Ongoing and Completed Projects
Google AI Hub: Google’s anchored its presence with a huge 1 GW AI Hub and data center, spread over 600 acres throughout three Vizag campuses.
Sify Technologies AI Edge: Sify’s launching a 50 MW AI-ready edge data center, complete with an integrated submarine cable landing station, right on Vizag’s coastline.
Proposed and Future Giga-Scale Projects
Reliance Industries Giga-Scale AI Center: Reliance scored 855 acres in Vizianagaram (Polipalli and Bhogapuram), backed by a Rs 1,08,010 crore investment. This massive project will pack in a giga-scale AI Data Centre plus an international cable landing station.
RMZ Group Megacluster: RMZ lined up a $10 billion plan to build a phased 1 GW hyperscale data center cluster near Vizag, set to cover up to 700 acres.
AdaniConneX Platform: This group is eyeing a string of AI-ready data centers, aiming to combine sovereign data storage with Andhra’s coastal connectivity.