The Indian data center sector is expected to see 560 MW (IT power load) capacity during 2021-23 as per statistics. This will drive the capacity of 447 MW to 1007 MW. As for Hyderabad, capacity addition of 66MW is expected to account for over 9.5% of India’s capacity from the current 30 MW level. Telangana is one of the states in India that had an independent Data Centre Policy as early as 2016. Of course, it has a large talent pool, high quality, and efficient infrastructure, the city is well connected and is seismically safe. To add to all this, a dedicated policy makes Hyderabad one of the most attractive destinations to set up data centers, according to experts.
Hyderabad is also expected to draw data centers and hyper-scale cloud providers thanks to its pro-active policies, favorable incentives, reliable power supply, and economical setup costs. Hyderabad for now accounts for a seven percent share as of December 2020 standing at 30 MW IT power load capacity.
The data centers in the city are spread over seven lakh sq ft and are primarily concentrated in HITEC city and Budvel. About 80% of the built-up space is utilized by 5864 racks or units. The city is expected to see an addition of 8MW in 2021 followed by 29MW each for 2022 and 2023.
Hyderabad-based CtrlS is setting up a 2 million sq ft hyperscale data center in the city, while Flipkart has also set up its data center in Hyderabad in 2019. Amazon is setting up large-scale hyper-scale data centers in the city with an investment of Rs 11,624 crore (app $1.6 billion). While the data center at Meerkhanpet will be spread across 82,883 sq mts, the center in Chandanvalley and Hythabad village will be 66,003 sq mts. The data centers are likely to begin operations by 2022-23.
The National Payments Corporation of India (NPCI) will be setting up its own tier-4, smart data center at an investment of Rs 500 crore at Narsingi in Hyderabad. The city of pearls will be the leading data center activity along with Mumbai, Bengaluru, Chennai, Delhi, and Hyderabad.