Amazon to pump Rs 60,000 crore into Telangana data centre

Amazon has formally begun work on its data centre project in Telangana, marking a major milestone in one of the state's biggest technology investments. The technology and retail giant is set to invest Rs 60,000 crore over the next decade to establish its second data centre in India.

Foundation stone laid

Chief Minister A Revanth Reddy laid the foundation stone for the Amazon data centre on Wednesday (July 15), formally launching construction of the facility. The event marks the implementation of an agreement that was signed months ago between the Telangana government and Amazon.

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The company's interest in investing in Telangana first emerged during a visit to Davos by a state government delegation in January 2025 led by the Chief Minister.

During the trip, Amazon expressed its willingness to establish a data centre in the state and subsequently submitted a proposal to the government.

From Davos to MoU

The proposal moved forward later that year when both sides signed a Memorandum of Understanding during the Telangana Rising Global Summit held in Hyderabad in December last year. Nearly eight months after the MoU was signed, the project has now entered the construction phase.

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Amazon will construct the data centre office complex on a 48-acre site at Kandukur in Ranga Reddy district. The company aims to complete the project in 24 months.

Project details

Apart from the construction site, the Telangana government has allocated additional land for the company's future operations. Amazon has been allotted 202 acres in Future City and another 98 acres in Chandan Velly to support its data centre activities.

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According to the Telangana government, the upcoming facility will rank among the country's largest hyperscale data centres once operational. The government has also announced that the Rs 60,000 crore investment will be spread over a period of 10 years.

State offers incentives

To support the project, the state government is extending incentives and concessions worth Rs 125 crore to Amazon in various forms. Officials have described the project as a significant addition to Telangana's technology infrastructure and a major investment in the state's growing digital ecosystem.

(This article was originally published in The Federal Telangana)