The Telangana government is planning to establish India’s first dedicated data centre city on 1,500 acres of land at Aloor village in Chevella mandal, located approximately 55 km from Hyderabad. The ambitious project aims to strengthen Hyderabad’s position as the country’s leading digital infrastructure hub and attract hyperscale operators with sustainable infrastructure including treated wastewater supply and open access power facilities.
Chief Minister A Revanth Reddy has directed officials to prepare a comprehensive detailed project report covering water, electricity and connectivity requirements for the proposed data centre city. The IT and industries department has already completed the land identification process, marking a significant milestone in the state’s strategy to lead the national data centre sector. The project will be implemented under a public-private partnership (PPP) model to ensure both sustainability and revenue generation.
Hyderabad has already established itself as a major data centre destination, hosting hyperscale facilities of Amazon and Microsoft, along with co-location centres operated by CtrlS and CapitaLand. Other prominent players with presence in the city include STT Global, NTT Data, Sify and Tillman Global Holdings. The road widening project connecting Chevella is already progressing rapidly to support the infrastructure development.
According to a senior official in the chief minister’s office, while data centres with capacities between 150 to 200 MW are currently operational in Hyderabad, projects totaling 5 GW capacity are in the pipeline on government-allotted land. The official stated that the total capacity of all proposed data centres for which memorandums of understanding have been signed in Telangana will exceed 11 GW.
Recognizing the substantial water requirements of data centres, particularly in Chandanvelly and Bharat Future City, the state government has initiated a circular economy project to supply treated wastewater to industrial hubs. The Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) currently operates 41 sewage treatment plants with a combined treatment capacity of 1,750 million litres per day. The detailed project report envisions supply infrastructure for approximately 530 MLD, distributed between Chandanvelly and Bharat Future City.
Two major pipeline routes are planned as part of the infrastructure development. A 41-km pipeline from Attapur STP to Chandanvelly will supply secondary and tertiary treated water to high-demand data centres and manufacturing units, with projected demand of 239 MLD by 2035. Another 56.6-km pipeline from Nagole STPs to Bharat Future City will cater to upcoming smart urban development and data centres, with expected demand reaching 290 MLD by 2035.
The comprehensive infrastructure will feature advanced tertiary filtration, disinfection systems, high-efficiency pumping stations, ring main pipelines along the Outer Ring Road, and buffer reservoirs to manage peak demand. Since both pipelines will run along the ORR and key roads, they will serve additional industrial clusters including Ramachandrapuram, Patancheru, BHEL, Sultanpur, Gundlapochampally, Gajularamaram, Jeedimetla, Moula Ali and ALEAP estates. The treated water will also be utilized for firefighting, landscaping and maintaining greenery along the 158-km ORR.
Addressing the energy-intensive nature of data centres, the government is considering allowing companies open access to meet their power requirements. Officials note that Chandanvelly, Bharat Future City and Fab City have emerged as key clusters due to large land availability, robust infrastructure and proximity to Hyderabad airport. A senior industries department official stated that the purpose of the circular economy project is to utilize treated water to reduce freshwater stress, meet recycling targets and establish a long-term revenue model through bulk reuse water sales.
