BENGALURU: Microsoft on Thursday launched its largest data centre region in India in Hyderabad, expanding its cloud infrastructure to meet the growing demand for artificial intelligence (AI) services. Adani Group, Bajaj Finserv, HDFC Bank and PB Pay are among the early customers using the new facility.
The launch of the India South Central region expands Microsoft’s cloud footprint in the country to four regions, alongside Pune, Chennai and Mumbai.
The company said the addition gives it the largest hyperscale cloud presence in India, offering customers more options to run cloud services and AI workloads within the country.
Global tech firms deepen footprints in Hyderabad
Global technology companies are also deepening their footprint in the city. The report said AWS, Microsoft and Oracle are expanding through owned cloud regions and colocation partnerships. AWS, which launched its Hyderabad region in 2022, now accounts for a significant share of occupied capacity. Oracle has announced plans to establish its own data centre capacity in Hyderabad.
The rapid expansion, however, brings its own set of challenges. The report highlighted the need to strengthen power and network connectivity in peripheral locations and upgrade the electricity grid to support large-scale campuses. It also noted that planning approvals continue to affect project timelines despite the single-window clearance system.
Joseph Thilak, executive director, occupier strategy & solutions and head of Data Centre Business (India), Knight Frank India, said the country’s data centre sector is entering a more mature phase, driven by sustained cloud adoption, AI-led computing demand and rapid enterprise digitalisation. He said favourable demand, improving connectivity and a supportive policy environment would strengthen India’s position as a long-term data centre hub in Asia.