The government of the southern Indian state of Telangana has signed a Memorandum of Understanding (MoU) with the entity that is the joint venture between Netherlands-based UPC Renewables Group and Volt Data Centers, to establish a 100 MW AI data center at Bharat Future City in Hyderabad. The MoU was signed on the sidelines of the World Economic Forum 2026 in Davos.
Chief Minister A. Revanth Reddy led the ‘Telangana Rising’ delegation at WEF, and held discussions with Han De Groot (CEO, Volt), Steven Zwane (Co-founder, UPC Renewables – Asia Pacific), and Alok Nigam (CEO, UPC Renewables – India). Telangana’s IT Minister Duddilla Sridhar Babu, Revenue Minister Ponguleti Srinivas Reddy and senior officials were present at the meeting.
In a press release, the state government revealed that the project entails an investment of ₹5,000 crore over the next five years. To meet the power requirements of the data center, a dedicated 100 MW renewable energy plant will also be set up.
Chief Minister Reddy stated that advanced digital infrastructure would play a pivotal role in transforming Telangana into a US$ 3 trillion economy under Telangana Rising 2047.
Minister DS Babu said that the government would extend all necessary incentives and facilities for the establishment of advanced AI data centers. He added that the development of a net-zero city is an integral part of Telangana’s vision.
During the construction phase, the project is expected to generate around 3,000 direct and indirect employment opportunities, with an additional 800 jobs to be created once the data center becomes operational.