Data Centers in Hyderabad

Hyderabad – India’s Strategic Hub for Scalable Infrastructure

Executive Summary

Hyderabad is a primary destination for global enterprises requiring a resilient, secondary digital footprint in India. By merging competitive industrial power rates with a massive technical talent pool, the city offers a sturdy environment for low-latency services and high-density deployments.

Hyderabad: At A Glance

Network & Connectivity Ecosystem

Hyderabad functions as a significant secondary interconnection point, providing vital fiber diversity for the region as of January 2026.

Carrier Density & Carrier Neutrality: Carrier count: over 10. The market features approximately 10 to 15 active providers as of January 2026, ensuring a steady range of options for diverse fiber routing and provider redundancy.

Direct Cloud On-Ramps: Over 2, enabling access to 2 cloud regions as of January 2026. Localized on-ramps provide direct, private access to AWS and Oracle Cloud.

Internet Exchange Points (IXPs): Primary exchanges include DE-CIX and Extreme IX, which facilitate local peering to drive down latency for regional users as of January 2026.

Bare Metal: High-performance dedicated hardware solutions are widely available. Services are provided by global players such as phoenixNAP and Latitude.sh as of January 2026.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at approximately $0.07/kWh as of January 2026. This competitive pricing manages long-term operational expenditures for high-density deployments, supporting large-scale financial and technology operations.

Power Grid Reliability: The electrical grid serving the primary technology corridors is well-engineered. Facilities typically benefit from redundant feeds and multi-substation support to ensure consistent uptime for critical infrastructure as of January 2026.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are centrally located near Hitech City and Gachibowli. These districts house major campuses for global technology firms and financial institutions, minimizing latency for corporate applications.

Regional Market Reach: Hyderabad serves as the primary digital gateway for the states of Telangana and Andhra Pradesh, reaching a population of over 80 million people as of January 2026.

Tax Advantage For Data Centers: The region follows the national tax structure without specific local data center incentives. This provides a predictable financial environment for long-term infrastructure planning and capital investment.

Natural Disaster Risk

The overall risk profile is Low (5.5/10) as of January 2026. While the city is inland, environmental factors are a primary consideration for facility design in this region.

• River Flood (9.2/10): This is the highest environmental risk for the region, requiring specific mitigation for drainage and facility elevation as of January 2026.
• Earthquake (8.3/10): Seismic activity is a factor that influences structural engineering standards for resilient facility design.
• Tropical Cyclone (7.7/10): Regional storms can impact infrastructure through high winds and heavy rain.
• Drought (6.4/10): Long-term water availability is a consideration for facility cooling requirements as of January 2026.
• Regional Threats: While the city is inland, national factors like Tsunami (7.8/10) and Coastal Flood (7.8/10) are indirect risks that may impact regional supply chains.