Microsoft has purchased 48 acres of land in Hyderabad, worth INR 267 crore, with plans to expand its data centre business in India. The land was acquired from Sai Balaji Developers, and the chosen property is approximately 40 km away from Hyderabad’s main city.

According to reports, Microsoft intends to develop one of the largest data centres in the country as part of its expansion plans. This recent acquisition complements Microsoft’s existing network of data centre regions in Pune, Mumbai, and Chennai, which have been operational for the past five years.

Additionally, Microsoft has acquired two more land parcels in Hyderabad to support its data centre business expansion. The company has been progressively expanding its footprint in the flexible office space sector. In Hyderabad, Microsoft operates its India Development Centre, serving as a key campus alongside its locations in Bengaluru and Noida.

In response to India’s growing demand for data centres, several major players have announced significant investments and expansion plans.

Sunil Gupta, MD, and co-founder of Yotta Data Services revealed plans for five new data centre projects, including two in Mumbai, one in GIFT City, Gujarat, one in Chennai, and a 30MW campus in Dhaka, Bangladesh, aiming to explore global markets beyond India.

The surge in data centre investments includes commitments from Sify, Atlassian, and AWS. Sify has pledged over $360 million, Atlassian plans to establish data centres across India, and AWS is investing $12.7 billion to expand its data centre presence in the country.

Kotak Alternate Assets also announced plans to invest $800 million in developing 5-7 large data centres across India’s key property markets, targeting locations such as Mumbai, Chennai, Noida, and Hyderabad.

The surge in demand for data centres is fueled by the push for data localization, driven by India’s data protection norms and proposed data centre policy. The government’s introduction of “trusted geographies,” limiting cross-border data storage, has intensified the demand for data centres in India, attracting global data majors to invest in the country.

In response to this trend, Adani, in partnership with EdgeConneX, has raised $213 million to advance its data centre initiatives, aiming to become a leading data centre operator by 2030, with a capacity augmentation plan of 1 GW.

India’s data centre market is booming, with Nasscom predicting global investments to reach $200 billion annually by 2025. India is expected to draw around $5 billion annually within two years.