Business EconomyPosted at: Sep 24 2026 1:08PM


Microsoft opens its India South Central Data Centre region in Telangana

Hyderabad, Sept 24 (UNI) Microsoft , a global technology leader, on Thursday opened its India South Central Data Centre region in Hyderabad.
The new cloud region, designated as a strategic hub for Asia and the Global South, marks an expansion of Microsoft’s cloud and AI infrastructure in India and further strengthens Hyderabad’s role in the country’s cloud and AI ecosystem.
The region was inaugurated by Telangana Information Technology (IT) Minister D Sridhar Babu in the presence of Microsoft India and South Asia President Puneet Chandok and Microsoft India Development Centre Managing Director and President Rajiv Kumar.
Speaking on the occasion, Sridhar Babu said Telangana is targeting 5 GW of data centre capacity by 2029, with around USD 30 billion in potential investment across the broader AI and digital infrastructure ecosystem.
Telangana’s hyperscale and AI infrastructure ecosystem currently has more than 2.5 GW of data centre capacity either operational or under development, with new projects increasingly focused on AI-scale computing, high-density GPUs, hyperscale cloud and advanced cooling technologies.
Sridhar Babu said Microsoft’s investment would strengthen the state’s ambition to emerge as an innovation hub.
He said Telangana’s growth strategy was based on infrastructure, talent, academic institutions and an innovation ecosystem comprising more than 500 Global Capability Centres.
The state’s Hyderabad Global AI Strategy brings ttogether initiatives including AI City, Global AI Innovation Hub, AIKAM and TGDeX, aimed at developing capabilities across the AI value chain, from compute and data infrastructure to research, enterprise deployment and commercialisation.
Rajiv Kumar said Hyderabad had been an important part of Microsoft’s India journey for more than two decades, spanning engineering, innovation, cloud infrastructure and AI.
He said the company’s focus extended beyond digital infrastructure to skilling, workforce development, entrepreneurship and sustainability initiatives.
Puneet Chandok said the India South Central region is Microsoft’s fourth cloud region in India and represents the company’s largest hyperscale cloud footprint in the country.
He said Hyderabad’s talent pool, innovation ecosystem and AI-ready cloud infrastructure would support the next generation of AI-led businesses across India and the region.
In a release, the Global Technology leader said the India South Central region has a three-zone architecture designed to support capacity expansion, resilience and AI innovation.
It said the region operates with effectively zero water use for cooling and is working with local partners on groundwater recharge, rainwater harvesting and watershed resilience.
The company said its Elikatta groundwater-recharge programme had added approximately five million litres of recharge capacity by June 2026, while community programmes around the Hyderabad datacentre region had reached more than 22,400 people.
Microsoft is also developing Telangana’s local talent pipeline through its Data Center Academy, in partnership with IIIT Hyderabad, Young India Skills University, the Telangana government and Don Bosco Tech Society.
The 600-hour programme prepares students for careers in datacentre operations and infrastructure management.
Community skilling programmes have trained 556 young people, with 118 securing placements, while a Data Analytics programme with Shadnagar Municipality trained 151 students, of whom 108 secured placements, the company said.
Microsoft said these initiatives form part of its wider commitment to equip 20 million people in India with AI skills by 2030, with Microsoft Elevate India having already equipped more than 10 million people with AI skills.
The company is also supporting Telangana’s sustainability and talent agenda through the Green Skills & Applied AI Centre of Excellence in Hyderabad, developed in partnership with the Telangana government, 1M1B and MeitY Startup Hub.
The new cloud region is expected to support the growth of AI-led enterprises, digital innovation and technology capabilities by bringing advanced cloud infrastructure closer to businesses, talent and innovators, the release added.
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