calender_icon.png 25 September, 2026 | 1:03 AM

Microsoft deepens Telangana AI footprint

25-09-2026 12:00:00 AM

Opens South Central Data Centre Region at Chandanvelly in Rangareddy district

Metro India News | Hyderabad

Microsoft on Thursday opened its India South Central data centre region in Telangana, expanding its cloud and AI infrastructure presence in the country. Telangana IT Minister D Sridhar Babu, who inaugurated Microsoft’s India South Central datacenter region at Chandanvelly in Rangareddy district, said the state was targeting 5 GW of datacenter capacity by 2029, with around USD 30 billion in potential investment across the broader AI and digital infrastructure ecosystem, according to a press release.

Telangana’s hyperscale and AI infrastructure ecosystem is also expanding, with more than 300 MW of data centre capacity already operational and 2 GW under development across major global and Indian operators, the release said.

Sridhar Babu said Telangana was seeing strong investment in hyperscale and AI infrastructure, while global innovation centres and global capability centres continued to grow rapidly. "This is bringing together the infrastructure, talent, academia and innovation we need to build a truly global technology ecosystem. We are building on this foundation with an ambition for Telangana to reach 5 GW of data centre capacity by 2029 and attract around USD 30 billion in investment," he said.

"Microsoft’s investment is an important part of this journey and will further strengthen Hyderabad’s ability to power the next generation of AI, cloud and digital innovation for India and the world," he added.

Rajiv Kumar, Managing Director and President of Microsoft India Development Centre, said Hyderabad had been an important part of Microsoft’s journey in India for more than two decades. "From engineering innovation to cloud infrastructure and AI, Hyderabad has demonstrated the talent, ambition and ecosystem that will shape the future of technology," he said.

Puneet Chandok, President, Microsoft India and South Asia, said India’s AI opportunity belonged to those who moved from intent to action.

"India's AI opportunity belongs to those who move from intent to action—and in Hyderabad, we have. India South Central is live: our fourth cloud region in India, the largest hyperscale cloud footprint in the country, with some of India's most trusted institutions already building on it," he said.

Microsoft’s fourth cloud region in India features a resilient three-zone architecture designed to scale with customer demand and support long-term capacity expansion, resilience and AI innovation, the release said. The India South Central region will strengthen Hyderabad’s position as a strategic hub for cloud and AI, supporting the growth of AI-led enterprises, digital innovation and high-value technology capabilities in the region, it added.