IT and Industries Department has already identified the land for the proposed data centre city.

Hyderabad: The Telangana government is planning to develop India’s first dedicated data centre city near Hyderabad.

The proposed project will come up on 1,500 acres at Aloor village in Chevella mandal. The government aims to attract large global data centre operators by providing the required infrastructure, including water, electricity and connectivity.

Chief Minister A Revanth Reddy has directed officials to prepare a detailed report on the project’s requirements. The IT and Industries Department has already identified the land for the proposed data centre city.

Hyderabad emerges as data centre hub

Hyderabad has already become a preferred destination for major data centre companies. The city hosts facilities operated by global firms such as Amazon and Microsoft, along with data centre operators including CtrlS, CapitaLand, STT Global, NTT Data, Sify and Tillman Global Holdings.

In Telangana, data centres with capacities ranging from 150 MW to 200 MW are already operational. Projects with a combined capacity of 5 GW are also in the pipeline.

Focus on sustainable water supply

Due to the high water requirements of data centres, the state government is planning to supply treated wastewater to industrial clusters through a public-private partnership (PPP) model in Hyderabad.

The Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) currently operates 41 sewage treatment plants with a combined treatment capacity of 1,750 million litres per day.

The proposed infrastructure will support the supply of around 530 million litres of treated water per day to industrial areas, including Chandanvelly and Bharat Future City.

Open access power for data centres

As data centres require large amounts of electricity, the government is considering providing open access power to companies operating in the sector.Areas such as Chandanvelly, Bharat Future City and Fab City have emerged as important data centre clusters due to the availability of land, infrastructure and proximity to Hyderabad airport.