Tuesday, Nov 10, 2026

Hyderabad ideal to set up data centres

Many corporates, government enterprises opting to establish their units in the city

By Sruti Venugopal

Published Date - 30 July 2021, 12:30 AM

Hyderabad: Microsoft has joined the long list of multinational companies (MNCs) that have chosen Hyderabad to set up its data centre. This comes just months after Amazon Web Services, another large corporate, announced that it will establish its data centre in the State. Not just large corporates, even government-led enterprises like the National Payments Corporation of India (NPCI) chose Hyderabad to set up their smart data centre.

So what is it that makes Hyderabad such an ideal destination for companies both large and small to set up their data centres?

According to experts one of the major factors for this interest is the geographical location of the city. Located at a seismic zone of two or three, Hyderabad is least prone to earthquakes and floods especially in the IT hubs such as Hitec City and beyond.

“Another big plus for the city is the availability of highly skilled people in the domains of cloud computing, data analysts, and the like. The intellect is an important factor for any organisation looking to set up their data centre here,” says BS Rao, vice-president, marketing, CtrlS, a Hyderabad-based Asia’s largest rated 4 data centre.

In terms of real estate, the city offers comparatively lower rates than cities like Mumbai and Chennai that have traditionally been the hubs for data centres.

“Hyperscalers – which are data centres that consume massive energy – are slowly emerging in Hyderabad with companies like Amazon and Microsoft. Amazon has been given land in peripheral locations like Shamshabad to set up their data centre which is closer to the IT hubs. The cost of real estate is much cheaper in the city and Hyderabad can host a distinct set of data centres,” says Samson Arthur, director, Knight Frank (Hyderabad).

Another big need of any data centre is access to seamless bandwidth and an undisrupted power facility. In both these factors, Telangana and particularly Hyderabad, has been gaining momentum. The government has made all efforts to build the infrastructure that has led to surplus bandwidth and fibre connectivity which goes up to gigabytes for commercial purposes. “The fibre highways between Mumbai and Hyderabad have been set up two to three decades ago so there is no way we can question the bandwidth availability,” says Rao.

Similarly, power supply has been seamless in the IT corridor of the city with the government providing electricity without any major power cuts since the formation of the State.