AWS to Invest INR 60,000 Cr In Telangana To Build Data Centres

SUMMARY

A government official said that AWS requested the state for an additional parcel of land for the expansion plans, and the proposal was approved by local authorities

Besides AWS, Telangana also received additional commitments to the tune of INR 20,000 Cr from Tillman Global Holdings and Blackstone to set up data centres in the state

This follows Amazon, in September 2024, announcing plans to infuse an additional $2 Bn into Telangana to expand its data centre capabilities in the state

In a major boost for Telangana’s IT ecosystem, Amazon Web Services (AWS) has reportedly committed to invest INR 60,000 Cr (around $7 Bn) to build data centres in the state.

“AWS will be expanding its data centres in Hyderabad in a big way with plans for fresh investment of around INR 60,000 Cr. With this, AWS region in Hyderabad will play an important role in supporting AWS’ growth of cloud services in India, including AI in the future,” an official in the chief minister’s (CM) office told The Hindu Businessline.

The official added that AWS requested the state authorities for an additional parcel of land for the expansion plans, and the proposal was approved by the government.

The commitment came after a delegation, led by CM Revanth Reddy and state industries minister D Sridhar Babu, met Amazon top brass on the sidelines of the World Economic Forum’s annual conference in Switzerland’s Davos.

Besides AWS, Telangana also received additional commitments to the tune of INR 20,000 Cr from Tillman Global Holdings and Blackstone to set up data centres in the state. While the US-based Tillman Global Holdings will invest INR 15,000 Cr to set up a data centre with a capacity of 300 MW in Hyderabad, Blackstone signed an agreement to set up a 150 MW capacity data centre in Hyderabad with an investment of INR 4,500 Cr.

Cumulatively, Telangana has inked pacts to the tune of INR 80,000 with the three companies.

The latest development comes five months after Amazon announced plans to build a new hyper scale data centre in Hyderabad, which is said to be critical for artificial intelligence (AI) and machine learning (ML)-enabled services.

In September last year, Amazon also reportedly announced plans to infuse an additional $2 Bn into Telangana to expand its data centre capabilities in the state. Currently, AWS is operating three data centres in Telangana and has invested around $1 Bn in the state.

AWS is aggressively expanding its presence in the country. In December last year, it reportedly bought a 38.18-acre land parcel in Palava near Mumbai from Lodha Group for more than INR 450 Cr to build a hyperscale date centre.

Besides Amazon, other big tech giants are also building their data centres in the country. Last year, Google signed a memorandum of understanding (MoU) with real estate developer Anant Raj to offer cloud computing services and data centre infrastructure to enterprises. Moreover, Oracle, in May last year, also said that it plans to double its investments in India, with a focus on AI and data.

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