The Telangana government has signed a Memorandum of Understanding (MoU) with Japan-based companies NTT DATA and Neysa Networks to establish an Artificial Intelligence Data Centre cluster in Hyderabad. The agreement was formalized during a high-level investment meeting in Tokyo which was attended by Chief Minister A. Revanth Reddy. The project involves an investment of Rs 10,500 crore and aims to build India’s largest AI compute infrastructure.
The upcoming facility will be a 400 Megawatts data centre cluster equipped with 25000 Graphics Processing Units (GPUs). It will support both public and enterprise AI workloads. The facility is designed to align with Telangana’s goal of becoming the AI capital of India, offering sovereign, scalable and sustainable computing capacity. NTT DATA brings global experience in data centres and IT services, while Neysa contributes its AI-focused cloud platform for accelerating the development of AI solutions.
The project will use a combination of grid and renewable energy sources with a capacity of up to 500 Megawatts. It will also adopt advanced cooling technologies such as liquid immersion and adhere to high Environmental, Social and Governance (ESG) standards. The centre will collaborate with academic institutions in Telangana to build AI talent and support the state’s digital infrastructure initiatives. This agreement follows other major data centre announcements in Hyderabad, highlighting the city’s growing position as India’s leading data centre hub.
