Hyderabad among top-3 data centre markets in South India

Hyderabad: The data centre market in South India is witnessing growth with Hyderabad featuring in the top three major cities’ list, besides Chennai and Bangalore. These regions are poised to play a crucial role in the global data centre landscape, with the capacity projected to grow 65 per cent by 2030. This surge is supported by substantial government incentives, strategic infrastructure investments, and a rising demand for digital services, a Colliers India report said.

The investment management company said that Hyderabad is rapidly emerging as a data centre hotspot, backed by government policies and connectivity. The city has an installed capacity of 47 MW, with 20 MW under construction and 38 MW planned. Lisitng the advantages of the city, Colliers India said that Hyderabad has a competitive real estate market coupled with robust infrastructure. “The anticipated 80 per cent increase in data centre capacity by 2030 across Hyderabad, Chennai, and Bangalore highlights the region’s growing strategic importance in the digital infrastructure ecosystem. With sustained government support and continuous infrastructure development, South India is set to become a global data centre hub,” says Swapnil Anil, Executive Director, Colliers India.

The report further mentioned that the combined installed data centre capacity in Chennai, Bangalore, and Hyderabad stands at around 200 MW, with 190 MW currently under construction, and an additional 170 MW planned. These developments are expected to increase the total capacity by 80 per cent over the next few years, underscoring the region’s strategic importance in supporting global digital infrastructure.

The incentives provision by the State governments in Telangana , Tamil Nadu, and Karnataka, is promoting data centre growth. These include subsidies and tax benefits on land acquisition, reduced power tariffs, and significant tax breaks, followed by infrastructure development such as investment in power and telecommunications infrastructure, and lastly, Ease of Doing Business.

Citing a recent data, Colliers India said that BFSI dominates the market, accounting for nearly 35 per cent of total occupancy, followed by IT firms with 30 per cent, while Hyperscalers occupy 20 per cent, and other sectors constitute the remaining 15 per cent. About the monthly recurring charges for data centres in South India, the company said that it ranges between Rs 6,650 to 8,500 per kW/month according to the usage.