Hyderabad Emerges as India’s Fastest-Growing Data Center Hub

Hyderabad has emerged as one of the fastest-growing data center markets in India, transforming itself from an IT hub into a major infrastructure destination. According to Knight Frank India’s latest report, India Data Center Market Update 2025, the city’s data center capacity has grown from 60.9 MW in 2022 to 151.4 MW in 2025. Additionally, projects with a combined capacity of 1.9 GW are currently under various stages of development, making Hyderabad the second-largest data center market in the country after Mumbai.

The report highlighted Hyderabad’s geographical stability, lower operational costs compared to other major cities, and strong government support for advanced technologies such as high-density GPUs and liquid cooling systems. Major operators including NTT DATA and AdaniConneX are rapidly expanding their presence in the city. Global technology giants are also strengthening their footprint, with Microsoft set to launch its India South Central Data Center this year, while Amazon Web Services (AWS) already operates three availability zones in Hyderabad, commanding a 46% market share. Oracle has also announced a new data center in the city as part of its expansion strategy.