Amazon Chooses Telangana for its Biggest India Data Centre Investment

Within the next twenty-four months, Hyderabad will be home to Amazon's biggest data centre in India. During the project's foundation stone-laying ceremony on July 15 at Bharat Future City, Chief Minister Revanth Reddy made the announcement. The facility, built by Amazon at a cost of INR 60,000 crore, is among the biggest data centres to emerge in the nation and in the city—which has grown into the third-largest data centre market in India.

Close to 20 major providers operate out of almost 34 operating facilities in Hyderabad. The city is home to several major corporations, such as CapitaLand with their 40 MW facility, CtrlS with their DC3 and DC4 facilities in Gachibowli and the Financial District, and Iron Mountain with their 5.5 MW site.

Growing Nexus of Data Centres in India

Data centre capacity is already among the digital economy's most prized possessions, thanks to India's rapidly expanding AI industry. In January 2025, while at Davos, the CM recalled a discussion he had with senior executives from Amazon. Google's announcement of its 600-acre, three-campus, gigawatt-scale AI Hub and data centre in Visakhapatnam came just two months before Amazon started building. The framework agreement was signed in December 2025, roughly twelve months after an in-principle agreement to create a facility in Hyderabad, during the Telangana Rising Global Summit in India.

220 acres in Bharat Future City and 98 acres of land in Chandanvelly have been allotted to Amazon by the state. To further aid in the development of the peri-urban region, the state is offering incentives of INR 125 crore. According to the concept of Telangana Rising 2047, the peri-urban economy (PURE) includes the areas on the outskirts of cities where urban and rural characteristics mix. Its primary function is to facilitate the quick conversion of land for use in manufacturing, logistics, and other large-scale infrastructure projects.

Amazon Focusing on its Expansion in India

Officials from Amazon who were present at the ceremony announced that the remaining work will be spaced out over a decade, with the first phase of operations starting after two years. Part of its $13 billion investment in India, Amazon Web Services is building a data centre in Hyderabad with the intention of making it the biggest digital and cloud computing hub in the nation.

Building a comparable cloud-based infrastructure in Mumbai is also part of the firm's investment strategy. In 2025, while meeting with Prime Minister Narendra Modi, Amazon CEO Andy Jassy revealed that the company was intending to invest $35 billion across its Indian companies.

Consequently, it intends to invest a total of US$48 billion in the nation from 2026 to 2030. According to Andy, who met with Modi last year, the goals of Amazon India and India's government in the areas of democratising access to AI, digitising small businesses, creating jobs, and encouraging exports are similar. In order to fulfil the high demand across all of its Indian businesses and assist India in achieving these goals, the firm plans to invest more than $48 billion over the next five years. With the construction of state-of-the-art hyper-scale facilities in Hyderabad, Amazon's clients will have access to custom AI chips and managed AI services through the data centre.