Hyderabad Rises to Second Position in the Country

Hyderabad has emerged as one of the fastest-growing data centre markets in India, transforming beyond an IT hub into a major infrastructure destination. According to a report by Knight Frank India titled India Data Center Market Update 2025, the city’s data centre capacity has grown from 60.9 MW in 2022 to 151.4 MW in 2025. With an additional 1.9 GW pipeline under various stages of development, Hyderabad now ranks second after Mumbai. Its geographical stability, lower costs compared to expensive cities, and government support for advanced technologies like GPUs and liquid cooling are driving this growth. Companies such as NTT Ltd. and AdaniConneX are rapidly expanding their presence in the city.

Global tech giants are also strengthening Hyderabad’s position as a data centre hub. Microsoft is set to launch its India South Central data centre this year, while Amazon Web Services already operates three zones with a 46 percent market share. Oracle has also announced a new facility in the city. Nationwide, India’s data centre capacity across seven key cities—including Chennai, Delhi, Bengaluru, Pune, and Kolkata—has crossed 1.6 GW by the end of 2025. Growth is fueled by AI, cloud adoption, and data localisation norms. New capacity additions rose from 361.6 MW in 2024 to 371.5 MW in 2025, reflecting strong sector momentum.