US tech major expands Indian cloud and AI infrastructure footprint to support state’s $30bn digital ecosystem drive.
Microsoft has officially inaugurated its India South Central data-centre region in Chandanvelly, located within Telangana’s Rangareddy district, significantly expanding its cloud and artificial intelligence infrastructure footprint in the country.
The new site marks Microsoft’s fourth cloud region in India and represents its largest hyperscale footprint in the nation to date. Built with a three-zone resilient architecture, the facility is designed to scale alongside expanding enterprise demand and accelerate regional AI development, reinforcing Hyderabad’s standing as a major technology hub.
The launch aligns with Telangana’s target to achieve 5 gigawatts of data-centre capacity by 2029, a goal projected to attract roughly $30 billion in investment across the wider digital infrastructure ecosystem. The state currently holds over 2.5 gigawatts of hyperscale and AI capacity either fully operational or under active development.
Telangana IT Minister D Sridhar Babu highlighted that Microsoft’s expansion plays a pivotal role in establishing a world-class technology ecosystem by uniting infrastructure, talent, and academic research. Rajiv Kumar, Managing Director of the Microsoft India Development Centre, noted Hyderabad’s two-decade legacy as a core engineering hub for the firm, while Puneet Chandok, President of Microsoft India and South Asia, emphasised that the new infrastructure provides the foundation for domestic institutions to transition from AI concept to commercial deployment.
