Mumbai: US tech giant Microsoft is preparing to build a data center in Telangana with an investment of Rs 15,000 crore. For this, the company is in talks with the state government in the final stages. According to sources, Microsoft has also identified the plot near Hyderabad. A senior government official, who did not wish to be named, said, “Telangana is witnessing some big investments in the IT sector. Microsoft will build its data center here and its announcement may go soon. This data center will be near Hyderabad.
A Microsoft India spokesperson declined to comment. In 2019, Microsoft and Reliance Jio signed a long-term agreement to set up cloud data centers in India. As part of the agreement, Microsoft plans to bring Azer Cloud on Jio network targeting small business houses that want to adopt cloud technology.
In the past, many global giants have invested in the data center space in India. Amazon Web Services, Google, Microsoft, private equity firms and local companies have also shown interest in opening data centers. According to the Praxis Global Alliance report, data center revenues are projected to reach nearly $4 billion by 2024, with IT power load capacity expected to grow at a compound annual growth rate of 16 per cent during this period. The demand for cloud technology is increasing with data localization regulations and companies moving towards digital.
Last week Google announced the launch of its new cloud region in the National Capital Region (NCR). Through this, services will be provided to the public sector customers of India and the Asia Pacific region. Last year, Amazon Web Services announced an investment of $2.8 billion to set up a data center in Telangana. Sources said Amazon's investment would be over 10 years, as it is setting up data centers at three different locations.
Brookfield Infrastructure is also working on a plan to form a joint venture to develop data centers in India under the brand name BAM Digital Realty.