Data Centers in Hyderabad

Hyderabad – South-Central India's Connectivity Hub

Hyderabad is a primary digital infrastructure hub for South-Central India, engineered for enterprises that require robust connectivity and access to a major economic and technology corridor. Its strategic location offers a reliable platform for deploying latency-sensitive applications serving the massive Deccan Plateau population and connecting to India's national fiber optic backbone.

Hyderabad: At A Glance

Network & Connectivity Ecosystem

Hyderabad's network ecosystem provides resilient, high-performance connectivity essential for modern digital operations. The market features a solid mix of domestic and international carriers, direct cloud access, and growing peering options.

Carrier Density & Carrier Neutrality: The market includes over 10 network providers as of September 2025. Multiple carrier-neutral data centers ensure competitive and redundant connectivity options for colocation customers.

Direct Cloud On-Ramps: With over 2 dedicated on-ramps as of September 2025, Hyderabad offers private, low-latency access to major cloud platforms, including AWS and Oracle Cloud. This enables secure and high-performance hybrid cloud architectures across 2 cloud regions.

Internet Exchange Points (IXPs): The market is served by key IXPs, including Extreme IX - Hyderabad and DE-CIX Hyderabad. These exchanges facilitate efficient local traffic routing, reducing latency and improving performance for users in the region.

Bare Metal: Bare metal cloud solutions are readily available from multiple providers. Global suppliers like Hivelocity and phoenixNAP offer dedicated server options for workloads demanding maximum performance and control.

Power Analysis

Power infrastructure in Hyderabad is well-established to support data center operations, though the grid composition relies heavily on traditional sources.

Average Cost Of Power: Industrial power costs are approximately $0.07/kWh as of 2019. This competitive pricing makes it economical to run power-intensive computing infrastructure at scale. The grid is primarily fossil-fuel-powered (~75%), with renewables and nuclear contributing the remainder.

Power Grid Reliability: The city's primary data center zones are supported by well-engineered power infrastructure with access to redundant substations. Facilities are built with comprehensive UPS and generator backup systems to ensure high levels of uptime.

Market Access, Business & Tax Climate

Hyderabad's location and business environment make it a strategic choice for reaching one of India's most important economic regions.

Proximity To Key Business Districts: Data centers are strategically located near major technology and business parks like HITEC City and the Financial District. This proximity provides low-latency connectivity for the city's thriving IT, pharmaceutical, and biotechnology industries.

Regional Market Reach: From Hyderabad, organizations can effectively serve a vast market across the states of Telangana, Andhra Pradesh, Maharashtra, and Karnataka. Its central location makes it an ideal disaster recovery site for operations in Mumbai or Chennai.

Tax Advantage For Data Centers: While India does not offer specific tax incentives for data centers, the predictable national GST framework simplifies tax management. The business-friendly environment in Telangana state provides a stable foundation for long-term investment.

Natural Disaster Risk

Hyderabad has a High-risk profile for natural disasters, with an INFORM Risk score of 5.5 out of 10 as of September 2025. This rating highlights the need for purpose-built facilities with stringent engineering standards to mitigate potential disruptions.

The primary natural hazards driving this risk score include:

• River Flood: Score of 9.2
• Earthquake: Score of 8.3
• Tsunami: Score of 7.8 (regional risk)
• Coastal Flood: Score of 7.8 (regional risk)
• Tropical Cyclone: Score of 7.7

While Hyderabad is an inland city, the risk profile reflects regional vulnerabilities to seismic activity and significant weather events like cyclones, which can impact regional infrastructure. The highest individual risk is river flooding, making site selection and facility fortification critical.