Data Centers in Hyderabad

Hyderabad, India – India’s Emerging Tech Hub

Hyderabad is a primary data center market for enterprises targeting South-Central India's vast digital economy. Its strategic location, combined with a growing base of cloud and network providers, offers a compelling alternative to more congested coastal markets, ensuring resilient and low-latency connections for business-critical applications.

Hyderabad, India: At A Glance

Network & Connectivity Ecosystem

Hyderabad's connectivity is well-suited for enterprises that require reliable, low-latency access to customers and cloud services across the region. The market is supported by a solid foundation of 13 data centers and a growing carrier presence.

Carrier Density & Carrier Neutrality Over 10 unique network service providers operate in Hyderabad, as of September 2025. The market features carrier-neutral facilities, giving customers the flexibility to choose providers and optimize for cost and performance without being locked into a single network.

Direct Cloud On-Ramps With 2 dedicated cloud on-ramps connecting to 2 distinct cloud regions, as of September 2025, Hyderabad provides direct, private access to major platforms. Local on-ramps include:

• AWS
• Oracle Cloud

This direct connectivity is critical for building hybrid cloud architectures, reducing data transfer costs, and improving application performance compared to transiting the public internet.

Internet Exchange Points (IXPs) While public peering is less prevalent than in Mumbai, most interconnection occurs through private peering within carrier-neutral data centers. For broader peering, traffic is often routed through national exchange points in major hubs.

Bare Metal Bare metal server capacity is readily available in Hyderabad. Providers like Hivelocity offer dedicated server solutions for workloads that demand the highest levels of performance and security, bypassing the virtualization overhead of traditional cloud instances.

Power Analysis

Hyderabad offers a stable and cost-effective power environment, a key factor for any large-scale data center deployment.

Average Cost Of Power Industrial electricity costs are approximately $0.07/kWh, as of 2019. This competitive pricing makes the market attractive for compute-intensive workloads and helps manage the total cost of ownership for colocation.

Power Grid Reliability The power grid serving Hyderabad's primary data center zones is well-engineered to support mission-critical operations. Major facilities are typically fed by redundant utility substations, ensuring high levels of uptime and service continuity. The national grid is predominantly fossil-fuel based, with a growing renewable energy component.

Market Access, Business & Tax Climate

Hyderabad’s business environment is a major draw, providing access to a skilled workforce and a massive consumer and enterprise market.

Proximity To Key Business Districts Data centers in Hyderabad are strategically located to serve the city's major technology and business parks, such as HITEC City. This proximity allows financial services, technology, and pharmaceutical companies to achieve low-latency connections essential for their operations.

Regional Market Reach Positioned in South-Central India, Hyderabad is an ideal hub for serving a large domestic population across several states. Its location helps reduce latency to end-users in the region compared to deploying infrastructure solely in coastal cities like Mumbai or Chennai.

Tax Advantage For Data Centers There are no specific tax incentives or abatements for data center operators or customers in Hyderabad. The primary financial benefits are derived from the market's competitive power pricing and operational efficiencies, not government subsidies.

Natural Disaster Risk

Hyderabad has a high overall risk profile, rated 5.5 out of 10, as of September 2025. While it avoids the primary cyclone risk of coastal cities, enterprises must plan for other significant environmental threats.

The main natural hazards to consider are:

• River Flood: The highest individual risk factor, requiring careful site selection away from floodplains.
• Earthquake: A significant seismic risk that necessitates facilities built to modern structural standards.
• Tropical Cyclone: While inland, the region can experience secondary effects from major cyclones, such as heavy rainfall.
• Drought: A recurring environmental challenge in the broader region that can impact water resources.