Telangana government outlines strategies to attract more data centres, urges investors to look beyond incentives
Outlining strategies the Telangana government is pursuing to attract more data centres, a senior official in the Industries Department urged prospective investors on Thursday to refrain from incentive shopping and instead consider the inherent benefits of investing in the state.
“Yes, we would be giving incentives. But we know our strengths… know why you are coming here. So if you keep your expectations a little lower, we will also be happy to extend whatever small incentive we can within limited resources. It will help the economy grow and the local economy flourish,” the official said.
“That line of negotiation will really help move ahead fast. It will help in putting more resources into infrastructure creation, which in turn will help the industry,” he said, addressing a conference on data centres organised by an industry body here. He assured the government will provide quality infrastructure, power and water, cooling systems, and all the required infrastructure.
The official said there is immense interest among firms to set up data centres in Hyderabad, citing the strong presence of leading global firms like Amazon, Meta, Google, and Microsoft, the region’s seismic stability, and optic fibre connectivity.
Calling upon data centre firms to consider locations beyond Hyderabad, he said “we would be more than happy to give much bigger land parcels if you go a little farther.” The emphasis on spatial planning in the state’s Vision 2047 document will within next few years see creation of radial roads and a Regional Ring Road, thus reducing travel time from the hinterland to the Outer Ring Road to around 90 minutes.
Availability of power and water in such locations will be easier compared to Hyderabad, whose water requirements, both domestic and industrial, including that required for cooling needs of data centres, have to be lifted, he said. There are plans to utilise grey water for the cooling systems and adopt district cooling technology, he added.
The senior official urged data centre investors to help the state also host manufacturing facilities of firms that are part of the ecosystem. “We want to bring the entire backward and also forward linkages… want them to manufacture here,” he said.
Another senior official from the Department of Energy said Telangana recorded nearly 10% growth in peak power demand this year and is rapidly strengthening its energy ecosystem to meet the rising needs of industries and AI-driven digital infrastructure.
The industry body said in a release that discussions at the conference highlighted Telangana’s emergence as a strategic digital infrastructure hub supported by progressive policy frameworks, robust connectivity, and skilled talent availability.
Hyderabad
Outer Ring Road
Regional Ring Road
Hyderabad
Outer Ring Road
Regional Ring Road
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