Data Centres Policy 2016

Scaling IT/ITES
Announced: July 1, 2016
Launched: July 1, 2016

Progress Overview

Progress: 90%
Proposed
Approved
Launched
Scaling
Mature
Archived

Metrics Dashboard

Hyperscaler Investments Attracted

4 major investors

AWS Data Centre Investment

$ 4.4 Bn

Microsoft Data Centre Investment

$ 2 Bn

Essential Service Designation

1 policy status

Milestones

Data Centres Policy Released

Completed

Data Centres Policy released as part of the ICT Policy 2016 sectoral policy suite, designating data centres as essential services.

Completed: July 1, 2016

Essential Service Designation

Completed

Data centres formally designated as essential services under state law, guaranteeing uninterrupted power supply and dual power grid connectivity.

Completed: December 31, 2016

Hyperscaler Investment Wave

Completed

AWS, Microsoft, and Google Cloud announced major Hyderabad data centre investments, validating the essential service model and policy incentives.

Completed: December 31, 2023

AWS $4.4B & Microsoft $2B Investments

Completed

AWS announced a $4.4 billion investment and Microsoft announced a $2 billion investment in Hyderabad data centre infrastructure.

Completed: December 31, 2024

CtrlS AI Data Centre MoU

Completed

CtrlS signed an MoU for a $1.15 billion AI data centre cluster in Hyderabad, one of the largest such commitments in India.

Completed: January 1, 2025

Yotta 25,000 GPU AI Supercomputer MoU

In Progress

Yotta signed an MoU to establish a 25,000 GPU AI supercomputer facility in Hyderabad, advancing the state's AI infrastructure ambitions.

Target: December 31, 2026

Description & Context

The Data Centres Policy 2016 positioned Hyderabad as India's preferred data centre and disaster recovery hub by granting data centres essential service status-guaranteeing priority power allocation, exemptions from outages, and government-funded security within a dedicated Data Centres Campus. Hyderabad's seismic stability (Zone-II) and pre-approved building and power permissions under TS-iPASS reduce regulatory friction to a minimum. Power tariffs are set by the Telangana State Electricity Regulatory Commission (TSERC). The policy has catalysed hyperscaler investment at scale: AWS ($4.4 billion), Microsoft ($2 billion), CtrlS ($1.15 billion AI data centre cluster MoU, January 2025), and Yotta's 25,000 GPU AI supercomputer MoU (2025) establish Hyderabad as a leading destination for AI infrastructure investment.