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Microsoft opens data centre in Telangana amid AI infra expansion push

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Microsoft opens data centre in Telangana amid AI infra expansion push

Home / Economy / News / Microsoft opens data centre in Telangana amid AI infra expansion push

Microsoft's India South Central data centre region is now live in Telangana, as the state targets 5 GW of capacity and around $30 billion in AI and digital infrastructure investment by 2029

Microsoft on Thursday opened its India South Central data centre region in Telangana.

Shine Jacob Chennai 5 min read Last Updated : Sep 24 2026 | 1:52 PM IST

Microsoft on Thursday opened its India South Central data centre region in Telangana, with the region designated as a strategic hub for Asia and the Global South.

The development marks a significant expansion of Microsoft’s cloud and AI infrastructure footprint in India and reinforces Telangana’s growing role in the country’s cloud and AI economy.

Microsoft’s expansion comes as Telangana’s hyperscale and AI infrastructure ecosystem crosses a new scale, with more than 2.5 GW of data-centre capacity either operational or under development across major global and Indian operators. Telangana is targeting 5 GW of data-centre capacity by 2029, with around $30 billion in potential investment across the broader AI and digital infrastructure ecosystem, the government said on Thursday.

What is significant is the shift in the nature of this capacity: new projects are increasingly being designed around AI-scale compute, high-density GPUs, hyperscale cloud and advanced cooling, rather than conventional enterprise data-centre requirements. Global players including Microsoft, AWS, Iron Mountain, CtrlS, Sify, TCL, NTT DATA and CapitaLand are investing in large-scale compute and data-centre infrastructure.


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