Data Centers in Hyderabad

Hyderabad – Central India's Digital Hub

Hyderabad is a primary data center market for enterprises targeting Central and Southern India. The city's combination of strong fiber connectivity, direct cloud access, and a supportive business environment makes it an essential hub for deploying digital infrastructure. For companies requiring low-latency access to a massive consumer and business population, Hyderabad delivers a critical performance and reliability advantage.

Hyderabad: At A Glance

Network & Connectivity Ecosystem

Hyderabad provides a reliable and well-connected environment for digital infrastructure, serving as a key intersection point for domestic network traffic.

Carrier Density & Carrier Neutrality: Over 10 network carriers operate within Hyderabad's colocation facilities as of September 2025. The market features multiple carrier-neutral data centers, giving customers choice and cost control for their connectivity needs.

Direct Cloud On-Ramps: The market has over 2 dedicated cloud on-ramps serving 2 cloud regions as of September 2025. Private, low-latency connections are available directly to AWS and Oracle Cloud, which is ideal for hybrid cloud architectures.

Internet Exchange Points (IXPs): Peering is available through national exchanges like NIXI and other private peering arrangements. This facilitates efficient traffic exchange between networks, reducing latency for end-users throughout the region.

Bare Metal: Bare metal cloud solutions are readily available from multiple providers. Global suppliers like phoenixNAP and Hivelocity offer dedicated server infrastructure in the region, providing compute resources without the virtualization overhead.

Power Analysis

Average Cost Of Power: Industrial power costs in Hyderabad are approximately $0.07/kWh as of 2019. This competitive rate helps manage the significant operational expense of running high-density compute and storage infrastructure.

Power Grid Reliability: The power grid supporting Hyderabad's primary data center zones, such as the Hitec City area, is well-engineered. Facilities in these areas typically have redundant connections to multiple substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Hyderabad are strategically located near major business and technology hubs like Hitec City and Gachibowli. This proximity provides low-latency connectivity for the city's dense concentration of IT, pharmaceutical, and financial services companies.

Regional Market Reach: From Hyderabad, organizations can effectively serve a large portion of Central and Southern India. Its strategic location makes it an excellent disaster recovery site for primary deployments in Mumbai or Chennai.

Tax Advantage For Data Centers: India does not currently offer specific national tax incentives for data center construction or operation. The primary financial advantage comes from locating in a competitive market with reasonable power costs and a large talent pool, rather than direct government subsidies.

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. While the overall risk class is high, it is driven by specific, well-understood hazards rather than a broad vulnerability.

The most significant natural risks include:

• River Flood (9.2/10)
• Earthquake (8.3/10)
• Tropical Cyclone (7.7/10)

Data center site selection is critical. Modern, purpose-built facilities in the region are constructed to mitigate these risks, typically located outside of flood plains and engineered to withstand seismic activity common to the area.