Hyderabad: In 24 months, Amazon’s largest data centre in India will commence operations in Hyderabad, Chief Minister Revanth Reddy said while laying the foundation stone for the project in Bharat Future City on Wednesday.
At Rs 60,000 crore, Amazon’s facility is one of the largest data centres to come up in the country and in the city, which has become the third-largest data centre market in India. Hyderabad hosts nearly 34 operational facilities run by close to 20 major providers. Some of the large companies operating out of the city include CapitaLand’s 40 MW facility, CtrlS facilities (including DC3 in Gachibowli and DC4 in the Financial District), and Iron Mountain’s 5.5 MW site.
Amazon’s commencement of construction comes just two months after its competitor Google’s announced its massive, gigawatt-scale AI Hub and data center in Visakhapatnam spanning over 600 acres across three campuses.
With the artificial intelligence boom accelerating in India, data centre capacity has become one of the most valuable assets in the digital economy. As a host of Telangana Cabinet ministers were present at the foundation-laying ceremony, the CM harkened back to the conversation he had with the Amazon senior management in January 2025 at Davos.
After an in-principle agreement to establish a facility in Hyderabad, the framework agreement was signed in December 2025, nearly 12 months later, at the Telangana Rising Global Summit in India. The state has allocated 202 acres in Bharat Future City and 98 acres in Chandanvelly to Amazon, along with incentives worth Rs 125 crore aimed at developing the Peri-Urban Region.
As per the Telangana Rising 2047 vision, the peri-urban economy (PURE) encompasses the transitional zones on city fringes where rural and urban features coexist. It has been created to drive manufacturing, logistics, and large-scale infrastructure while managing rapid land conversion.
With the first phase of operations commencing after two years, Amazon officials present at the ceremony on Wednesday said the remaining work would be spread over 10 years. Amazon Web Services is known to be positioning Hyderabad as the country’s largest digital and cloud computing hub, and the data centre in Hyderabad is part of Amazon’s $13 billion investment in India, which also includes developing similar cloud-based infrastructure in Mumbai. Amazon CEO Andy Jassy had previously disclosed in 2025 during his meeting with Prime Minister Narendra Modi, that the company was planning a US $35billion investment across its Indian businesses, taking its total planned investment in the country to US$48bn between 2026 and 2030.
“As we grow Amazon in India, our business priorities align with India’s priorities of democratising access to AI, digitising small businesses, creating jobs and enabling exports, and we are investing over $48 billion in the coming five years to meet the strong demand across our business in India and to help India achieve these priorities,” Andy had said after meeting Modi last year.
Through the data centre in Hyderabad, Amazon’s customers will gain access to custom AI chips and managed AI services, with state‑of‑the‑art hyper‑scale facilities being constructed here.
(Edited by Pakhi Khare)
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