NTT Data, a global digital business and technology services provider, has entered into a tripartite Memorandum of Understanding (MoU) with cloud platform company Neysa Networks and the government of the southern Indian state of Telangana, to establish an Artificial Intelligence (AI) data center cluster with an investment of Rs 10,500 crores (~US$ 1.2 billion) in Hyderabad.
A delegation led by Telangana Chief Minister A Revanth Reddy is currently on a visit to Japan, and the MoU was signed in Tokyo on Friday April 18. Taking to X (formerly Twitter), Reddy posted, “The upcoming facility in Hyderabad will feature a 400 MW data center cluster, designed to host the country’s most powerful AI supercomputing infrastructure, with 25,000 GPUs.”
Showcasing why his state was a good choice for the project, he further said, “Telangana offers policy stability, strategic location advantages, reliable and high-quality electric power, skilled talent, and quick clearances through our single-window system to foster critical AI infrastructure and make the state a leader in AI-related digital services.”
Readers would recall that Telangana was recently in the news for attracting a series of big billion-dollar investments since the beginning of the year. First, it signed an MoU with ST Telemedia Global Data Centers (STT GDC) India to build an AI-ready data center campus at an investment of Rs 3,500 crores. The facility with a target capacity of 100MW will be built in the information technology hub of Mucherla, Meerkhanpet in the Ranga Reddy district.
Shortly after that CtrlS Datacenters, a major player in the Indian data center market, announced plans to set up a new data center park at the upcoming Chandanvelly Industrial Park near Hyderabad. The 40-acre campus will feature multiple high density, ultra-high density along with AI-ready, interconnected data center buildings with a potential capacity of over 600MW IT load when fully developed. In fact, CtrlS Datacenters signed an MoU with the state government to build a cluster of AI-ready data centers with a proposed investment of over Rs 10,000 crores. The announcement was made on the sidelines of the World Economic Forum (WEF) at Davos.
Three international investment and technology companies: Blackstone Group, Tillman Global Holdings, and Ursa Clusters, have also shown interest in building data centers in Telangana. They all signed MoUs collectively worth nearly Rs 25,000 crores with the state government at the WEF, at Davos.
According to Mordor Intelligence, “The Hyderabad Data Center Market size in terms of installed base is expected to grow from 65.50 megawatt in 2025 to 196.76 megawatt by 2031, at a CAGR of 20.12% during the forecast period (2025-2031).”