Telangana Partners with Japan for ₹10,500 Crore AI Data Centre

Last Updated on April 19, 2025 by SPN Editor

The Telangana government has signed a transformative Memorandum of Understanding (MoU) with Japan-based global IT services leader NTT DATA and cloud platform innovator Neysa Networks. The agreement, formalized during a high-level meeting in Japan on April 18, 2025, in the presence of Chief Minister A. Revanth Reddy, paves the way for the establishment of a state-of-the-art AI data centre cluster in Hyderabad. With an investment of ₹10,500 crore, this ambitious project underscores Telangana’s vision to become the AI capital of India and a global hub for cutting-edge technology.

The upcoming 400 MegaWatt AI data centre cluster will be a game-changer for India’s AI ecosystem, featuring an unprecedented 25,000 Graphics Processing Units (GPUs) to create one of the country’s most powerful AI supercomputing infrastructures. Designed to deliver sovereign, scalable, and sustainable compute capabilities, the facility will cater to both public and enterprise AI workloads, enabling advanced applications in fields such as healthcare, agriculture, education, and governance. By combining NTT DATA’s global expertise in AI data centre management with Neysa Networks’ AI acceleration platform, the collaboration is poised to develop innovative AI-first solutions that will drive digital transformation across industries.

Telangana has been at the forefront of India’s AI revolution, leveraging its robust IT ecosystem, skilled workforce, and progressive policies to foster innovation. The state has already made significant strides in integrating AI into governance and public services. Initiatives like the Telangana AI Mission, launched in collaboration with institutions like IIIT Hyderabad, have positioned the state as a leader in AI research and deployment. Hyderabad, often dubbed the “Silicon Valley of India,” hosts a thriving tech ecosystem, with global giants and startups alike contributing to advancements in machine learning, natural language processing, and computer vision. The new AI data centre cluster will further amplify these efforts, providing the computational backbone needed to scale AI innovation and attract global investments.

CM’s View on Proposed AI Data Centre

Chief Minister A. Revanth Reddy emphasized the project’s significance, stating, “This partnership with NTT DATA and Neysa Networks marks a pivotal moment in Telangana’s journey to lead India’s AI revolution. The AI data centre cluster will not only enhance our technological capabilities but also create thousands of high-skill jobs, fostering economic growth and positioning Hyderabad as a global AI hub.” The facility is expected to generate significant employment opportunities, particularly for AI researchers, data scientists, and IT professionals, while strengthening Telangana’s reputation as a destination for tech talent.

The collaboration also aligns with India’s broader push for digital sovereignty and sustainable technology. The AI data centre cluster will prioritize energy-efficient infrastructure, ensuring that Telangana’s AI ambitions are pursued responsibly. By offering scalable compute resources, the facility will empower local startups and enterprises to develop AI solutions tailored to India’s unique challenges, from improving agricultural yields through predictive analytics to enhancing healthcare delivery with AI-driven diagnostics.

This MoU builds on Telangana’s proactive efforts to foster international partnerships in AI. The state has previously collaborated with global organizations to establish AI research hubs and innovation centres, and this project with NTT DATA and Neysa Networks marks a significant milestone. As Hyderabad gears up to host this world-class AI infrastructure, Telangana is poised to redefine India’s role in the global AI market, driving innovation, inclusivity, and economic prosperity.

With this ₹10,500 crore investment, Telangana is not just building a data centre—it is laying the foundation for a future where AI transforms lives and industries. As the project takes shape, all eyes will be on Hyderabad, the emerging epicentre of India’s AI revolution.