Microsoft establishes its largest data center in Hyderabad, fourth in India

microsoft establishes its largest data center fourth in india

Tech giant Microsoft has acquired three land parcels in Hyderabad for around 275 crore rupees ($35.67 million) to establish a data center. The firm has acquired 22-acre in Mekaguda for 40 crore rupees ($5.2 million), 52-acre in Chandenvelly for 72 crore rupees ($9.3 million), and 41-acre in Shadnagar for 164 crore rupees ($21.3 million).

The Hyderabad data center region is an addition to Microsoft’s network of three existing data center regions in India across Chennai, Mumbai, and Pune, which have been operational for the past five-plus years.

International property consultant Cushman & Wakefield facilitated the land deal for Microsoft. According to IDC, Microsoft’s Indian data center regions contributed an additional $9.5 billion of the accumulated net- new revenue to the firm’s economy over five years from 2016-2020.

Anant Maheshwari, President of Microsoft India, said the firm was making long-term investments. Maheshwari said that a public cloud data center was not a one-time investment, and it was a continuous investment that the firm makes. He also added that they had doubled the capacity in the existing three data centers in the last two years.

Competitors are joining the race in India. Microsoft’s key rival Amazon announced in late 2020 it would spend $2.8 billion to build its second data center in the country, while Adani Group, in 2021, announced plans to build six data center parks across the South Asian nation.