Hyderabad emerges as a major hyperscale data centre hub in India

Hyderabad has emerged as one of India’s fastest-growing data centre markets, with live capacity more than doubling since 2022. Strong investments by Microsoft, AWS and Oracle, along with a 1.9 GW project pipeline, are driving the city’s transformation into a hyperscale and AI infrastructure hub.

Hyderabad: Hyderabad has emerged as one of India’s fastest-growing data centre markets, transitioning from a secondary IT/ITeS-led node into a strategic hyperscale and AI infrastructure hub.

The city’s live capacity has more than doubled from 60.9 MW in 2022 to 151.4 MW by the end of 2025. In addition, the city’s pipeline of committed and early-stage projects, aggregating 1.9 GW, is second only to Mumbai, driven by strong operator preference for large, campus-scale deployments, according to Knight Frank India’s latest report, India Data Centre Market Update 2025: Tracking Capacity, Demand and Supply Pipeline.

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Microsoft is launching its India South Central data centre region in Hyderabad in 2026, while AWS operates three availability zones in the city, anchoring hyperscale demand. AWS holds a 46 per cent share of the live IT capacity in the city.

Oracle operates its cloud services in Hyderabad through a colocation-based deployment but has announced plans to launch a data centre in Hyderabad to expand its data centre capacity in India. The presence of global cloud players reinforces Hyderabad’s emergence as a credible hyperscale hub.

The demand profile in Hyderabad has also shifted. While historically driven by IT/ITeS, the city witnessed a record-high take-up of 19.2 MW in 2024, signalling a shift towards hyperscale dominance. While absorption moderated in 2025, vacancy rates averaged 23 per cent, indicating that the market is in a build-out phase as it gears up for AI-driven demand.