Microsoft is bolstering its cloud infrastructure with a significant expansion of its data center footprint in India. The tech giant has recently acquired 48 acres of land in Hyderabad, worth approximately Rs 270 crore, signaling its commitment to ramping up its data center operations in the region.
Hyderabad, emerging as a pivotal hub for data centers, is set to witness a significant boost with Microsoft’s latest expansion move. The company aims to establish one of the largest data centers in India as part of its ambitious growth strategy.
In March 2022, Microsoft announced its intention to establish its fourth data center in India, with the aim to empower businesses and organizations to thrive in an increasingly digitized landscape, leveraging cloud and AI technologies to drive innovation and efficiency. In January 2023, Microsoft announced plans to increase its data center capacity in Telangana to six.
The data centers are slated to deliver state-of-the-art data security and cloud solutions tailored to meet the diverse needs of enterprises, startups, developers, educational institutions, and government bodies. It will also integrate seamlessly into Microsoft’s global cloud infrastructure, enhancing the company’s ability to deliver cutting-edge services to customers across India and beyond. In India, Microsoft currently operates data centers in Mumbai, Pune, and Chennai.
India’s data center capacity is projected to double from 875MW to around 1800MW by 2025, fueled by factors such as the proliferation of data-driven technologies, digital transformation initiatives, and regulatory mandates for local data storage.
The country’s burgeoning data center ecosystem, comprising over 100 locally operated facilities by major tech players, reflects its growing stature as a preferred destination for IT infrastructure. The market, which was valued at US$ 4.4 billion in 2020, is forecasted to reach US$ 8.0 billion by 2026.
Microsoft’s expansion in Hyderabad represents a significant milestone in the company’s strategic roadmap, positioning it to capitalize on the opportunities presented by India’s dynamic and rapidly evolving technology landscape.
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