Chief Minister A. Revanth Reddy has instructed officials to conduct a comprehensive study of incentives being offered by various states to attract data centre investments. The directive came during a high-level review meeting held at the State Secretariat on Tuesday, where discussions focused on companies proposing to establish data centres in Telangana and the infrastructure requirements for these projects.
The Chief Minister emphasized that land allocation for data centres must be rational and well-justified. During the meeting, he enquired about the progress of ongoing land acquisition in different regions designated for setting up data centres and other critical infrastructure projects. The review aimed to assess the state’s preparedness to accommodate the growing interest from companies in establishing data centre facilities.
CM Revanth Reddy issued clear instructions to officials to adopt a liberal approach while determining land compensation for affected landowners. He directed them to engage in detailed discussions with farmers and ensure that compensation packages are fixed in a manner that satisfies all stakeholders. The Chief Minister stressed the importance of fair treatment of landowners whose properties would be acquired for these strategic projects.
The Chief Minister made an important observation regarding the investment proportions in data centre projects. He noted that while companies are prepared to invest thousands of crores of rupees in establishing these facilities, the proportion allocated for land acquisition is relatively small compared to the overall project cost. This perspective underlined his argument for ensuring smooth land acquisition processes.
CM Revanth Reddy expressed his view that timely provision of land and necessary infrastructure would enable companies to complete their projects quickly. He emphasized that removing bottlenecks in land allocation and infrastructure development would accelerate the establishment of data centres in the state, thereby attracting more investments and creating employment opportunities.
The review meeting saw participation from several senior officials of the state government. Chief Secretary Ramakrishna Rao attended the meeting along with CM Special Secretary Ajith Reddy and IT Department Principal Secretary Sanjay Kumar. Other key officials present included Special Chief Secretary (Energy) Navin Mittal and Future City Development Authority Commissioner Shashank.
The meeting reflects the state government’s proactive approach to positioning Telangana as a preferred destination for data centre investments. With the digital economy expanding rapidly and data storage requirements increasing exponentially, states across India are competing to attract major data centre operators by offering attractive incentive packages and infrastructure support.
The Chief Minister’s directive to study incentives offered by other states indicates that Telangana is preparing to formulate competitive policies to attract data centre investments. The focus on liberal land compensation and timely infrastructure provision demonstrates the government’s commitment to creating an investor-friendly environment while ensuring fair treatment of landowners affected by these development projects.
