Hyderabad outpacing Chennai and Bengaluru as India's data center hotspot
Hyderabad is quickly becoming the new hotspot for data centers in India, outpacing Chennai and Bengaluru.
A recent report says the city and other rising markets now hold about 10% of India's operational data center capacity (178 MW), but by 2030, that number could jump nearly six times to around 1.1 GW, making up about 20% of the projected 5.65 GW operational capacity.
AI and cloud spur $250B investments
The big push is coming from growing demand for AI, cloud computing, and stricter rules on where data is stored.
Conglomerates, standalone operators, and big tech firms such as Google, Amazon and Microsoft have announced more than $250 billion of investments in India over the past 12 months.
While Hyderabad stands out thanks to large contiguous sites, prospective power availability and strong demand from hyperscalers and AI companies, there are still some hurdles, like limited transmission capacity, but with new hubs popping up and government incentives in play, the city looks set for major growth.