Telangana Emerges as Data Center Powerhouse with Green Energy Commitment

Telangana is positioning itself as a leader in India's data center industry with near 1 gigawatt installed capacity. The government focuses on green energy and aims to attract 8-10 gigawatts in investments. While building data centers in India is cheaper, challenges like skill shortages and green energy adoption remain.

Telangana is rapidly becoming a major player in India's data center sector, according to Navin Mittal, Special Chief Secretary of Energy for the state. Speaking at the ASSOCHAM Smart Datacenters & Cloud Infrastructure Conclave 2026, Mittal highlighted Telangana's commitment to sustainable and cost-effective power solutions, targeting up to 10 gigawatts in future investments around Hyderabad.

The state is leveraging its Telangana Clean Green Energy Policy 2025 to incentivize both industry and renewable energy solutions, aiming to reduce operational costs and attract more businesses. 'Telangana is dedicated to supplying the energy demands for new and expanding industries, ensuring scalability and sustainability,' Mittal stated.

Despite India's potential, significant challenges like skill shortages and green energy adoption persist. Experts observed that though data centers cost significantly less to build in India compared to the U.S., governmental pressure on operators to use green energy is crucial. A skills gap in key areas like mechanical engineering further compounds the challenge, demanding urgent attention, industry leaders from Delta Electronics India warn.