Microsoft to Set-up Data Centre in Hyderabad

Recently, it was reported that global IT and technology services provider, Microsoft is under a discussion with the Government of Telangana, to establish a data center in Hyderabad. It must be known that the IT giant already operates a huge development center in the same city.

Microsoft is expected to invest about $3 billion to set up this data center in Hyderabad.

According to some sources the government and the firm have not made it to the final stage of discussion over the project. Even, the final announcement can be expected to take 2 to 3 months.

According to a source in the Telangana government, just like Amazon, Microsoft is going to make a huge investment in the city. Last year Amazon made a big investment in Hyderabad to establish Amazon Web Services’ data center.

In Hyderabad, Amazon Web Services (AWS) has invested an amount of ₹20,761 crores to set up its second region in India, with three three Availability Zones (AZs). Before Hyderabad, it was only in Mumbai, where the AWS region was located in India. With this investment, Amazon has also established its eleventh AWS region in Asia.

One of the major reasons, which make Microsoft realize the need to establish a Microsoft data center in Hyderabad was its increasing demand for localization.
With the announcement of its data policy in 2016, Telangana became the first Indian state to establish a dedicated data center policy. According to the state, the ingredients which make Telangana the most ideal choice for locating a data center, include its power reliability, talent availability, and the geography with the least seismic activity.

The Telangana government is offering various relaxations to global firms like Microsoft, Amazon to attract them to make investments in the state. Along with excluding data centers from the power cut zones, the state has also declared them as an essential service.

Even, the government has also given them relaxation from some Acts, so that the project can come on the ground without unnecessary delay.