Telangana to Build India First 1500 Acre Data Centre City in Aloor

The Telangana government has identified 1,500 acres of land in Aloor village within Chevella mandal, located 55 kilometers from Hyderabad, to establish India’s first dedicated data centre city. Chief Minister A Revanth Reddy has directed officials to prepare a detailed report on the necessary water, electricity, and connectivity infrastructure for the massive project, which aims to secure Hyderabad’s position as a premier digital hub.

The state IT and industries department has already finalized the land identification process for the project. The proposed city is designed to attract global hyperscale players by offering sustainable infrastructure, including treated water supply and open access power. Hyderabad already hosts major hyperscale data centres for tech giants such as Amazon and Microsoft, alongside co-location facilities operated by CtrlS, CapitaLand, STT Global, NTT Data, Sify, and Tillman Global Holdings.

According to a senior official in the Chief Minister’s Office, data centres of 150 MW to 200 MW are currently operational in the state. Projects with a total capacity of 5 GW are already in the pipeline where the government has allotted land, while the total capacity of all proposed data centres with signed memorandums of understanding (MOUs) exceeds 11 GW.

To address the massive water demands of these data centres, particularly in nearby Chandanvelly and Bharat Future City, the government has initiated a circular economy project to supply treated wastewater to industrial hubs. This initiative will run under a public-private partnership (PPP) model. Chief Minister Reddy recently directed officials to prepare a detailed project report (DPR) for conveyance and distribution infrastructure to deliver secondary treated wastewater from sewage treatment plants (STPs).

The infrastructure plan includes two major pipeline routes. A 41-kilometer pipeline will run from the Attapur STP to Chandanvelly to supply secondary and tertiary treated water to data centres and manufacturing units like Welspun, where water demand is projected to reach 239 million liters per day (MLD) by 2035. Another 56.6-kilometer pipeline will connect Nagole STPs to Bharat Future City to cater to upcoming smart urban developments and data centres, with an expected demand of 290 MLD by 2035.

To address the high energy requirements of these facilities, the state government is considering allowing companies open access to meet their power needs. Chandanvelly, Bharat Future City, and Fab City have already emerged as key clusters due to land availability, infrastructure, and proximity to the Hyderabad airport.