Telangana government sets 5 GW hyperscale data centre target by 2029, eyes $30 billion in investment

The government of Telangana is targeting 5 gigawatts (GW) of hyperscale data centre capacity by 2029 and aims to attract around $30 billion in investment, the IT minister said at the inauguration of Microsoft’s India South Central data centre region in the state.

He said the state is building on a strong foundation of hyperscale and AI infrastructure investment, with more than 300 megawatts of data centre capacity already operational and 2 GW under development across Telangana. He described Microsoft’s facility as helping build one of India’s most advanced technology clusters in the state, while noting the continued growth of global innovation centres and global capability centres.

Microsoft’s India South Central region has been designated as a strategic hub for Asia and the Global South. The facility operates with effectively zero water use for cooling, with Microsoft working with local partners on groundwater recharge, rainwater harvesting and watershed resilience.