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Data Centers in Hyderabad

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Hyderabad – High-Tech Hub for Scalable Digital Growth

Executive Summary

Hyderabad is a critical anchor for the digital economy in India, providing a resilient environment for global enterprises and hyperscale developers. The city offers a strategic advantage by balancing competitive operational costs with a massive technical talent pool, ensuring high-speed service for the expanding South Indian market.

Hyderabad: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAHigh-capacity backbone with reliable international links.
Direct Cloud On-RampsOver 2 – as of September 2025Local access to AWS and Oracle Cloud.
Power Cost$0.07/kWh – as of September 2025Mix of fossil fuels and renewables.
Disaster RiskModerate (5.5/10) – as of September 2025Inland location avoids direct coastal threats.
Tax IncentivesNo – as of September 2025Standard national tax framework applies.
Sales Tax18% GST – as of September 2025Standard rate for digital services.

Network & Connectivity Ecosystem

Hyderabad functions as a secondary hub for the region, providing vital redundancy for major coastal gateways.

Carrier Density & Carrier Neutrality: Carrier count: over 10 as of September 2025. This provides 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 September 2025. Specific on-ramps include AWS and Oracle Cloud.

Internet Exchange Points (IXPs): Local exchanges such as DE-CIX and Extreme IX facilitate local peering, which localizes traffic to reduce latency for regional users as of September 2025.

Bare Metal: Dedicated hardware solutions are widely available in this market. Services are provided by global players like phoenixNAP and Latitude.sh as of September 2025.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at approximately $0.07/kWh as of September 2025. This competitive pricing supports large-scale operations and helps manage long-term operational expenditures for high-density deployments.

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.

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.

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.

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 Moderate (5.5/10) as of September 2025. The following natural hazards are the most significant for this location:

  • River Flood (9.2/10): This is the highest environmental risk for the region, requiring specific mitigation for drainage and facility elevation.
  • Earthquake (8.3/10): Seismic activity is a factor that influences structural engineering standards for resilient facility design.
  • Tropical Cyclone (7.7/10): High winds and heavy rain from regional storms can impact infrastructure as of September 2025.
  • Drought (6.4/10): Long-term water availability can affect cooling requirements for large-scale data centers.
  • Regional Threats: While the city is inland, national risks like Tsunami (7.8/10) and Coastal Flood (7.8/10) are indirect factors that may impact regional supply chains.
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