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India's First “Data Center City”: A 1,500-Acre Digital Hub Coming Near Hyderabad

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Fri Jun 26 17:05:38 IST 2026
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India is preparing for a major leap in digital infrastructure with plans to develop its first dedicated Data Center City on around 1,500 acres near Alor village, about 55 km from Hyderabad. The project aims to create a fully integrated ecosystem designed specifically for data center operations powered by cloud computing and AI demand.

What Is a Data Center City?

A Data Center City is not a typical IT park. Instead, it is a specialized zone built entirely for large-scale data infrastructure. It will include:

  • Massive server farms

  • Dedicated power substations

  • High-speed fiber optic networks

  • Advanced cooling systems

  • Backup power and security infrastructure

  • Wide internal roads and utility corridors

The idea is to provide everything a data center needs in one location, allowing companies to set up operations faster and more efficiently.

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Why 1,500 Acres?

Modern data centers require far more than just buildings. They depend on continuous power supply, cooling systems, and network connectivity.

Large-scale facilities also need:

  • Transformer and power distribution networks

  • Water storage and recycling systems

  • Backup energy infrastructure

  • Space for future expansion

The 1,500-acre layout is designed to accommodate current demand and future growth, especially as AI and cloud computing expand rapidly.

Water and Power Strategy

One of the most notable features of the project is its sustainability approach.

  • Treated wastewater from nearby sewage treatment plants will be used for cooling

  • Around 530 MLD of recycled water is planned for industrial use

  • Dedicated power access will be arranged for uninterrupted 24×7 operations

This reduces pressure on freshwater resources while ensuring continuous cooling for high-power server systems.

Why Data Center Demand Is Rising

The growth of technologies such as:

  • Artificial Intelligence (AI)

  • Machine Learning

  • Cloud computing

  • OTT platforms

  • Digital payments and e-commerce

has significantly increased global data consumption.

AI-based servers now consume far more power than traditional systems, making large-scale, specialized infrastructure essential.

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