Microsoft opens India South Central cloud region in Hyderabad as Telangana targets 5 GW data-centre capacity
New cloud region designated as strategic hub for Asia and Global South; state projects around US$30 billion in potential AI and digital infrastructure investment
Telangana Information Technology Minister D. Sridhar Babu inaugurates Microsoft’s India South Central datacenter region alongside Puneet Chandok, President, Microsoft India and South Asia, and Rajiv Kumar, Managing Director and President, Microsoft India Development Center, in the presence of senior Microsoft and Telangana government officials on Thursday.
HYDERABAD: Microsoft has opened its India South Central datacenter region in Telangana, expanding its cloud and AI infrastructure footprint in India and strengthening Hyderabad’s role in the country’s emerging AI and hyperscale computing ecosystem. The region has been designated as a strategic hub for Asia and the Global South.
Telangana Information Technology Minister D. Sridhar Babu inaugurated the region alongside Puneet Chandok, President, Microsoft India and South Asia, and Rajiv Kumar, Managing Director and President, Microsoft India Development Center, in the presence of senior Microsoft and Telangana government officials.
The opening comes as Telangana’s data-centre ecosystem reaches 300 MW of operational capacity, with another 2 GW under development, as projects are increasingly designed around AI-scale computing, high-density GPUs, hyperscale cloud infrastructure and advanced cooling. Microsoft, AWS, Iron Mountain, CtrlS, Sify, TCL, NTT DATA and CapitaLand are among the companies investing in large-scale computing and data-centre infrastructure in the state.
Telangana targets 5 GW by 2029
Telangana is targeting 5 GW of data-centre capacity by 2029, alongside around US$30 billion in potential investment across the broader AI and digital infrastructure ecosystem.
The state’s strategy is built around infrastructure, talent, academic institutions and an innovation ecosystem that includes more than 500 global capability centres (GCCs).
Sridhar Babu said Microsoft’s expansion strengthens Telangana’s ambition to position itself as an innovation hub, bringing together infrastructure, talent, academia and innovation. He said the state aims to reach 5 GW of data-centre capacity by 2029 and attract around $30 billion in investment.
The investment is aligned with Telangana’s Hyderabad Global AI Strategy, which brings together AI City, the Global AI Innovation Hub, AIKAM and TGDeX to support AI development and adoption across the value chain—from compute and data infrastructure to research, enterprise deployment and commercialisation.
Microsoft’s fourth cloud region in India
Microsoft’s India South Central region is the company’s fourth cloud region in India and features a resilient three-zone architecture designed to expand with customer demand and support long-term capacity expansion, resilience and AI innovation.
Puneet Chandok, President, Microsoft India and South Asia, said Hyderabad’s talent base, innovation ecosystem and AI-ready cloud infrastructure are helping position the city as an important foundation for the next generation of AI-driven enterprises.
The new region is intended to support customers across India and the wider region as organisations adopt AI across their operations.
Focus on water resilience and community development
Microsoft said the India South Central region also incorporates a focus on responsible infrastructure. The region operates with effectively zero water use for cooling, while Microsoft is working with local partners on groundwater recharge, rainwater harvesting and watershed resilience.
By June 2026, Microsoft’s Elikatta groundwater-recharge programme had added approximately five million litres of recharge capacity. Community programmes around the Hyderabad datacenter region have reached more than 22,400 people, covering livelihoods, skills, governance and environmental sustainability.
Data-centre skills and AI training
Microsoft is also developing a local talent pipeline through its Data Center Academy, in partnership with IIIT Hyderabad, Young India Skills University, the Government of Telangana and Don Bosco Tech Society.
The 600-hour programme prepares students for careers in datacenter operations and infrastructure management. Community skilling programmes have trained 556 young people, with 118 securing placements, while a separate Data Analytics programme with Shadnagar Municipality trained 151 students, of whom 108 secured placements.
These programmes form part of Microsoft’s wider commitment to equip 20 million people in India with AI skills by 2030. Microsoft said its Elevate India initiative has already equipped more than 10 million people with AI skills.
Microsoft is also supporting the Green Skills & Applied AI Centre of Excellence in Hyderabad, in partnership with the Government of Telangana, 1M1B and MeitY Startup Hub. The initiative includes a Green Pharma track combining AI, green skills and life sciences.
The new cloud region is expected to bring advanced cloud infrastructure closer to businesses, talent and innovators, supporting AI-led enterprises, digital innovation and high-value technology capabilities across the region.
