Telangana Sets 5 GW Hyperscale Data Center Target for 2029

Telangana is targeting 5 GW of hyperscale data center capacity by 2029, alongside an ambition to attract around $30 billion in investment, according to a statement by the state’s IT minister at the opening of Microsoft India South Central.

The state said it already has more than 300 MW of data center capacity in operation, with a further 2 GW under development across Telangana. The 5 GW figure is a target for hyperscale capacity rather than an operational-capacity total, while the 2 GW development pipeline has not been accompanied by details on project owners, individual sites, delivery dates or power-supply arrangements.

Microsoft described India South Central as a strategic hub for Asia and the Global South. The company also said the facility uses effectively zero water for cooling. No methodology, measurement period or quantitative water-consumption figure was disclosed for that claim.

For data center developers, utilities and infrastructure suppliers, the gap between the state’s currently operational base and its 2029 objective points to potentially material demand for additional campuses, grid interconnection, transmission and distribution capacity, network infrastructure and water-efficient cooling systems. That demand will depend on Telangana’s ability to translate its investment target into funded developments and on execution of the capacity already under development.

The opening of the Microsoft region provides a concrete indication of major cloud-operator presence in Telangana. It does not, however, confirm delivery of the state’s broader 5 GW target or the associated investment ambition.