Amazon Breaks Ground on Its Largest India Data Centre, in Hyderabad

Hyderabad, 23 July 2026

Telangana has secured the biggest single data centre commitment Amazon has made anywhere in India. Chief Minister Revanth Reddy laid the foundation stone at Bharat Future City this week, telling attendees the facility would be operational within two years. The event followed roughly 18 months of negotiation that began with an informal conversation at Davos.

A Project of Unusual Scale

At an estimated cost of around ₹60,000 crore, the facility ranks among the largest data centres under construction in the country. It lands in a city that has quietly grown into India's third-largest data centre hub, already home to close to three dozen operational facilities run by nearly twenty providers, including established campuses from CapitaLand, CtrlS, and Iron Mountain. Even against that backdrop, Amazon's new site dwarfs everything else in the market.

The timing is notable too. Amazon's groundbreaking comes only about two months after Google unveiled its own gigawatt-scale AI hub and data centre campus in Visakhapatnam, a sprawling development spanning more than 600 acres across three campuses. Together, the two announcements show how aggressively Indian states are now competing to attract cloud and AI infrastructure, treating it as a prize to be courted rather than merely permitted.

Amazon has framed the broader investment as aligned with India's own push to expand AI access, digitise small businesses, and create jobs and export capacity. It's part of a five-year spending commitment the company has put at more than $48 billion.

How the Deal Came Together

• January 2025 — CM Revanth Reddy raises the idea informally with Amazon leadership on the sidelines of Davos.

• 2025 — An in-principle understanding is reached. Separately, Amazon CEO Andy Jassy tells Prime Minister Narendra Modi of a planned $35 billion investment push across India.

• December 2025 — A formal framework agreement is signed at the Telangana Rising Global Summit.

• May 2026 — Google announces its gigawatt-scale AI hub across 600+ acres in Visakhapatnam, Andhra Pradesh.

• 15 July 2026 — Foundation stone laid at Bharat Future City, Hyderabad.

• July 2028 — First phase targeted to go live. The remaining build-out is expected to continue for roughly a decade.

The Land and the Incentives

Under the agreement, the Telangana government has allotted 202 acres within Bharat Future City plus another 98 acres at Chandanvelly, alongside ₹125 crore in incentives set aside for developing the surrounding peri-urban belt. That belt falls within what the state's Telangana Rising 2047 plan designates as the PURE zone, peri-urban areas where rural and urban land use overlap, which the state wants to actively plan for manufacturing, logistics, and large infrastructure before unplanned conversion pressure takes over.

Part of a Much Larger Bet

Only the facility's first phase is expected within two years. Amazon representatives at the ceremony indicated the full build-out will unfold over roughly a decade. The company is widely seen as positioning Hyderabad as its principal cloud and digital hub in India, with this project forming one part of a $13 billion commitment to Indian infrastructure that also includes a comparable cloud build-out in Mumbai. That figure sits within an even larger pledge: Jassy has told Modi that Amazon's total planned spend across its Indian operations would reach $35 billion, bringing the company's cumulative India commitment to $48 billion between 2026 and 2030.

For Amazon's customers, the practical payoff will be greater access to the company's custom AI silicon and managed AI services, run out of hyperscale infrastructure built specifically for this site.

FAQs:

How much is Amazon investing in this Hyderabad data centre?

The facility is estimated to cost around ₹60,000 crore, making it Amazon's largest single data centre commitment in India.

Where exactly is the data centre being built?

It's located at Bharat Future City in Hyderabad, on 202 acres allotted there plus an additional 98 acres at nearby Chandanvelly.

When will it become operational?

The first phase is targeted for around July 2028, roughly two years after the foundation stone was laid. The full build-out is expected to continue for about a decade.

How does this compare to Google's data centre plans in India?

About two months before Amazon's groundbreaking, Google announced a gigawatt-scale AI hub and data centre spanning more than 600 acres across three campuses in Visakhapatnam, Andhra Pradesh, a separate project in a neighbouring state.

Is this Amazon's only major investment in India?

No. This project is part of a $13 billion infrastructure commitment that also includes a comparable cloud build-out in Mumbai, which itself sits within Amazon's broader pledge of $35 billion in planned India spend and a cumulative $48 billion commitment between 2026 and 2030.

How long did the deal take to finalise?

About a year passed between CM Revanth Reddy's informal pitch to Amazon leadership at Davos in January 2025 and the formal framework agreement signed in December 2025 at the Telangana Rising Global Summit.

What is the "PURE zone" mentioned in the deal?

PURE refers to peri-urban areas under Telangana's Rising 2047 plan, fringe zones where rural and urban land use overlap, which the state wants to proactively develop for manufacturing, logistics, and large infrastructure projects like this one.

Why does Hyderabad matter for this kind of investment?

Hyderabad is already India's third-largest data centre market, with roughly three dozen operational facilities from nearly twenty providers, including CapitaLand, CtrlS, and Iron Mountain. This project is set to be larger than any of them.

What will customers actually get from this data centre?

Access to Amazon's custom AI silicon and managed AI services, run on hyperscale infrastructure built specifically for the Hyderabad site.

Reporting based on coverage from the Bharat Future City Desk, 15 July 2026.