Technology giant Microsoft is in talks with the Telangana government to set up a data center in the southern state with an investment of Rs 15,000 crore. Microsoft has already chosen a land parcel near Hyderabad for the facility, Business Standard has reported.
“In the information technology (IT) space, Telangana is already seeing some major investments. Microsoft is establishing its data center here, and it may come out with a public announcement soon,” a source told the publication.
If it materializes, Microsoft would be the last in a string of companies to head to Telangana. Earlier this month, Kerala’s Kitex group, which specializes in kid’s apparel, moved to Telangana to set up a manufacturing base, with an initial investment of Rs 1,000 crore. In June, US-based Triton Electric Vehicle inked a memorandum of understanding for a Rs 2,100-crore unit for electric buses.
Reliance Jio and Microsoft had in 2019 partnered to set up data centers in India. Microsoft, as part of the deal, was to bring in its cloud computing service Azure Cloud on Jio’s network, targeting small businesses looking to move to cloud technology infrastructure.
Besides Microsoft, other international players of the likes of Google and Amazon Web Services are strengthening their presence in the data center segment in the country.
Brookfield Infrastructure, a subsidiary of Canada’s Brookfield, and Digital Realty recently said they have created a joint venture to set up data centers in India under the brand name BAM Realty.
Datacenter revenues are pegged at about $4 billion by 2024, Business Standard reported, citing the Praxis Global Alliance report.