• NTT DATA, a Japanese IT and digital transformation firm, has announced plans to build an AI data center cluster in Hyderabad, India.
• The project will be developed in partnership with Neysa Networks and the Telangana government, with an estimated investment of nearly $1.2 billion.
• The data center will be a 400 MW campus, featuring 25,000 GPUs and is expected to become one of India’s most advanced AI computing hubs.

In recognition of Telangana’s ambitious goals to become India’s “AI capital,” NTT DATA has embarked on a major initiative to establish an AI data center cluster in Hyderabad, India. The project, which is estimated to cost nearly $1.2 billion, aims to position the state as a hub for AI-driven data infrastructure. The AI data center cluster will be a 400 MW campus, housing 25,000 Graphics Processing Units (GPUs) and will be one of the most advanced AI computing hubs in the country. The project is expected to support Telangana’s goal of becoming the “AI capital” of India by providing sovereign and sustainable compute infrastructure for public and enterprise AI workloads. The data center will be powered by a combination of grid and renewable energy sources, scaling up to 500 MW, and will implement state-of-the-art cooling methods, such as liquid immersion. This approach will not only reduce the environmental impact of the data center but also make it a more sustainable and eco-conscious option for businesses.

“NTT DATA’s investment decision closely follows recent big-ticket data center projects by AWS, STT, Tillman Holdings, and CtrlS, and reiterates Hyderabad’s dominant position as India’s leading data center hub.”

According to a statement by the Chief Minister of Telangana, the collaboration between NTT DATA and Neysa Networks will enable the joint development of AI-first solutions, combining the company’s global data center leadership with Neysa’s AI acceleration platform. The AI data center cluster will be a significant milestone for NTT DATA, which already operates over 18 data centers in operation or development across India, totaling more than 265 MW across Delhi NCR, Mumbai, Chennai, Kolkata, and Bengaluru. At a global level, NTT DATA has operated over 150 data centers in more than 20 countries and regions.

Other operators in Hyderabad include CtrlS, Nxtra, Microsoft, Amazon, STT GDC, Pi, CapitaLand, and WebWerks/Iron Mountain. These companies are expected to continue to invest in the Indian data center market, as artificial intelligence adoption accelerates across industries. The growing demand for AI-driven data infrastructure is driving investment in India’s data center sector. As a result, Indian conglomerate Adani Group is preparing to inject another $10 billion into the country’s data center infrastructure, according to a recent report.

Key Features of the AI Data Center Cluster

• 400 MW capacity

• 25,000 GPUs

• Sovereign and sustainable compute infrastructure

• Grid and renewable energy sources

• State-of-the-art cooling methods

The Adani Group’s plan is part of its broader strategy to capture a rising wave of demand driven by artificial intelligence applications and business process outsourcing (BPO) services. The company is evaluating sites for two major data centers, each projected to have a capacity of around 1 gigawatt. Key players in the Indian data center market are expected to continue to invest in the sector as AI adoption accelerates. With NTT DATA’s launch of the AI data center cluster, Hyderabad is likely to become a top destination for global data centers, offering sovereign and sustainable compute infrastructure for public and enterprise AI workloads. The project supports Telangana’s goal of becoming India’s “AI capital” by providing a robust and eco-friendly data center infrastructure. As a result, Hyderabad is emerging as a key player in AI-driven data infrastructure, with the potential to support a wide range of AI applications in sectors such as healthcare, finance, and smart cities. The Asian country is witnessing a surge in AI data centers, driven by rising demand for cloud computing, machine learning, and big data analytics. These facilities provide the computational power necessary to support AI applications, and are expected to play a critical role in the country’s future economic growth and development.