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Data Centers in Hyderabad

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Hyderabad – India's Emerging Tech & Data Hub

Executive Summary

Hyderabad is a primary data center market for enterprises targeting South-Central India's vast digital economy. The city's combination of competitive power pricing, robust fiber connectivity, and a dense concentration of technology and life sciences companies makes it an essential location for deploying low-latency applications and disaster recovery infrastructure. Choosing Hyderabad ensures your digital services are positioned for performance and scalability in one of Asia's fastest-growing regions.

Hyderabad: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong domestic fiber routes with growing options for international connectivity.
Direct Cloud On-RampsOver 2 – as of September 2025AWS, Oracle Cloud. Provides private, high-performance access to major cloud platforms.
Power Cost$0.07/kWh – as of 2019Highly competitive pricing for industrial power in the region.
Disaster RiskHigh (5.5/10) – as of September 2025Primary risks include flooding and seismic activity, requiring resilient infrastructure.
Tax IncentivesNoThe region focuses on stable policy rather than specific data center tax breaks.
Sales Tax18% GST – as of September 2025Standard national Goods and Services Tax applies to services.

Network & Connectivity Ecosystem

Hyderabad has rapidly evolved into a significant interconnection point, second only to the largest coastal markets in India. The ecosystem is built for high-performance enterprise and cloud workloads.

Carrier Density & Carrier Neutrality With over 10 carriers present as of September 2025, Hyderabad offers excellent network choice. A healthy mix of national and regional providers ensures competitive pricing and redundant connectivity paths from carrier-neutral facilities.

Direct Cloud On-Ramps The market features over 2 direct cloud on-ramps, enabling private connections to 2 major cloud regions as of September 2025. Available providers include:

  • AWS
  • Oracle Cloud

These dedicated connections bypass the public internet, offering lower latency, higher security, and more reliable throughput for hybrid cloud architectures.

Internet Exchange Points (IXPs) While public peering is less centralized than in Mumbai, interconnection is robust. Most large-scale traffic exchange occurs via private network interconnects (PNIs) within key data centers, providing direct and efficient routing between major content, cloud, and enterprise networks.

Bare Metal Bare metal server options are readily available from multiple providers. This allows businesses to deploy dedicated, high-performance computing without the overhead of virtualization. Providers like Hivelocity and phoenixNAP offer solutions in the region.

Power Analysis

Average Cost Of Power The industrial electricity rate is approximately $0.07/kWh as of 2019. This competitive pricing makes running power-intensive workloads more economical compared to many other global markets.

Power Grid Reliability The power grid serving Hyderabad's technology corridors, such as HITEC City, is well-engineered to support mission-critical operations. Data centers in these zones benefit from redundant power feeds and multi-substation support, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Hyderabad are strategically located near major business hubs like HITEC City and Gachibowli. This proximity provides low-latency connectivity to the city's thriving IT, pharmaceutical, and biotechnology industries.

Regional Market Reach Hyderabad serves as an ideal hub for reaching hundreds of millions of consumers and businesses across South-Central India. It offers an excellent primary or secondary disaster recovery location for operations in other major Indian cities like Mumbai, Chennai, and Bangalore.

Tax Advantage For Data Centers India does not currently offer national tax incentives specifically for data center development or operation. The primary financial advantage comes from a predictable and stable business environment, competitive operational costs, and access to a massive domestic market.

Natural Disaster Risk

Hyderabad has a high overall risk score of 5.5 out of 10 as of September 2025. This assessment reflects significant exposure to specific natural hazards, demanding that facilities be engineered to high resiliency standards.

Key risks for the region include:

  • River Flood: The highest individual risk factor for the area.
  • Earthquake: Significant seismic risk requires facilities built to modern structural codes.
  • Tropical Cyclone: While inland, the region can be affected by the remnants of powerful cyclones.
  • Drought: A recurring environmental challenge that can impact resources.
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