Hyderabad is soon to expect a data center worth Rs.15,000 crore as agreed and to be set by the US tech giant Microsoft Corp., and the Telangana government as both have declared the finalization of the deal.

For this project a 50 acre plot has been acquired and about 300 job opportunities are expected to be generated by it.

Microsoft announced last year that it expected to create 50 to 100 additional data centers each year for the foreseeable future. It currently runs over 200 data centers all around the world. In 1998, Microsoft India established a research and development (R&D) center in Hyderabad. Apart from the company's Redmund headquarters, it is one of the company's largest R&D sites.

In 2019, the company formed a long-term partnership with Reliance Jio to build cloud data centers in India.

According to a JLL report, about 45 percent of India's present data center capacity of 499 megawatts (Mw) is located in Mumbai, the financial hub. It is followed by Chennai, Pune, and Bangalore, which each have 12 percent of the vote, Delhi, which has eight percent, Hyderabad, which has seven percent, and Kolkata, which has one percent.

Telangana was one of the first states in India to implement a data center strategy in 2016. Over the next five years, it aims to invest roughly $10 billion in the segment.

Telangana is attempting to bridge this gap by offering significant incentives to investors in the sector. In addition to expedited clearances and land in strategic areas, the state was prepared to give cloud services to those establishing centers in Telangana.

Telangana, despite being the country's youngest state, has received $33 billion in investments over the last seven years. The state has approved roughly 17,500 investment requests through a one-stop shop dubbed TSiPASS, which was launched in 2014. These factors enabled it climb from 13th place in the Doing Business Index in 2015 to third place in 2019.

Amazon Web Services (AWS) announced plans to build its second data center region in the country in Telangana for a $2.77 billion investment at the end of 2020. Similar services are also available in the state through Flipkart and CtlS.

Telangana also just struck an agreement with the Federation Internationale de l'Automobile (FIA), the regulatory organization of motorsport events such as Formula 1, to make Hyderabad the host city for Formula E, an electric car race.

As a result, Hyderabad has joined a select group of cities including Beijing, Buenos Aires, Miami, Berlin, Moscow, Paris, and Hong Kong as a venue for the event.