In September last year, plans surfaced for a massive data center project in Gujarat, with Reliance Industries aiming to create the “largest data center in the world.” Reliance is expected to source AI semiconductors from Nvidia, as part of their ongoing partnership. The two companies had earlier announced plans to build AI supercomputers and large language models (LLMs) tailored to India’s diverse languages, along with AI infrastructure across the country. Nvidia will supply its Blackwell AI processors for Reliance’s gigawatt-scale facility.
Despite Reliance’s ambitious claim, global competitors like Start Campus in Portugal and major tech players such as Meta, Sailfish, and Edged are also developing gigawatt-scale data centers worldwide. Reliance’s chairman, Mukesh Ambani, has emphasized India’s potential to use AI to drive prosperity and equality, leveraging the country’s robust digital connectivity infrastructure.
India’s government is supporting these initiatives with a $1.16 billion investment to boost AI and startup development. Meanwhile, Tata Electronics is collaborating with Taiwan’s Powerchip Semiconductor Manufacturing Corporation to establish India’s first semiconductor plant in Dholera, Gujarat.
Telangana’s Rise as a Data Center Hub
Telangana has positioned itself as a key player in India’s data center growth. The state has partnered with global firms like Blackstone’s data center arm, Ursa Clusters, and Tillman Global Holdings for large-scale projects in Hyderabad.
- Blackstone’s Project: A 150MW hyperscale facility with an investment of Rs 4,500 crore ($521 million).
- Ursa Clusters’ Initiative: A 100MW AI-optimized data center with an investment of Rs 5,000 crore ($580 million).
- Tillman Global Holdings’ Mega Project: A Rs 15,000 crore ($1.7 billion) facility delivering 300MW capacity.
Hyderabad is emerging as a leading data center hub, with investments from global players like Iron Mountain, AdaniConneX, Nxtra, Microsoft, and Tata Communications. AWS also operates a cloud region in Hyderabad and plans to expand further.
Recently, STT GDC and CtrlS announced new data center campuses in Hyderabad, further solidifying the city’s position as a global data center hotspot. As Dr. Sridhar Babu of the Telangana government remarked, these developments highlight the state’s investor-friendly policies and ability to attract technology leaders.
