Telangana Information Technology (IT) and Industries Minister D Sridhar Babu on Thursday, September 24, inaugurated Microsoft’s India South Central data centre region in Hyderabad. The region is designated as a strategic hub for Asia and the Global South.
Microsoft said the new region will support growing demand for cloud and AI services in India and the wider region. President of Microsoft India and South Asia Puneet Chandok said Hyderabad’s IT ecosystem had helped make it an important base for the company’s AI ambitions.
The launch comes as Telangana’s data-centre ecosystem expands rapidly. The state has 300 MW of data centre capacity already operational and 2 GW under development. With projects increasingly focused on AI-scale computing, high-density GPUs, hyperscale cloud and advanced cooling, Telangana is targeting 5 GW of data-centre capacity by 2029, alongside about $30 billion in potential investment across AI and digital infrastructure.
Sridhar Babu said Microsoft’s investment would add momentum to the state’s ambition of becoming a major centre for innovation and AI. Alongside Microsoft, AWS, Iron Mountain, CtrlS, Sify, TCL, NTT DATA and CapitaLand are investing in large-scale compute and data centre infrastructure in the city.
Microsoft also highlighted sustainability measures at the facility, including effectively zero water use for cooling and projects involving groundwater recharge, rainwater harvesting and watershed resilience.
The company is expanding its local skills programmes through its Data Centre Academy, developed with IIIT Hyderabad, Young India Skills University and other partners. A 600-hour course is training students for careers in data centre operations and infrastructure management.