Done: arunHyderabad: In a bold bid to outpace Andhra Pradesh and cement Hyderabad’s position as India’s premier digital hub, Telangana govt is planning the country’s first dedicated data centre city.Spread across 1,500 acres at Aloor village in Chevella mandal, 55 km from Hyderabad, the project is designed to attract hyperscale players while ensuring sustainable infrastructure through treated water supply and open access power.Chief minister A Revanth Reddy has asked officials to prepare a detailed report on requirements such as water, electricity and connectivity for the proposed city. The IT and industries department has already identified the land, marking a decisive step in Telangana’s strategy to dominate the data centre race.Officials say that Hyderabad has already emerged as a leading destination, hosting hyperscale centres of Amazon and Microsoft, alongside co-location facilities of CtrlS and CapitaLand. Other major players include STT Global, NTT Data, Sify and Tillman Global Holdings.“While data centres of 150 to 200 MW are currently operational, projects with a total capacity of 5 GW are in the pipeline where the govt has allotted land. The capacity of all proposed data centres (MOUs signed) in Telangana will be more than 11 GW,” a senior official in the chief minister’s office said.Recognising the massive water demand of data centres, especially in Chandanvelly and Bharat Future City, the state has initiated a circular economy project to supply treated wastewater to industrial hubs. The project will be implemented under a public private partnership (PPP) model, ensuring both sustainability and revenue generation.Revanth recently directed officials to prepare a detailed project report (DPR) for conveyance and distribution infrastructure to deliver secondary treated wastewater from sewage treatment plants (STPs) to major demand centres.“The purpose is to utilise treated water to promote a circular economy. The PPP developers will reduce freshwater stress, meet recycling targets and establish a long-term revenue model through bulk reuse water sales,” a senior industries department official said.The Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) currently manages 41 STPs with a combined treatment capacity of 1,750 million litres per day (MLD). The DPR envisions supply infrastructure for around 530 MLD, split between Chandanvelly and Bharat Future City.Pipeline infrastructureTwo major conveyance routes are also planned. A 41-km pipeline from Attapur STP to Chandanvelly, designed to supply secondary and tertiary treated water to high-demand data centres and manufacturing units like Welspun. Demand in this cluster is projected at 239 MLD by 2035.Another is a 56.6-km pipeline from Nagole STPs to Bharat Future City, catering to upcoming ‘Net Zero’ smart urban development and data centres, with demand expected to reach 290 MLD by 2035.Comprehensive infrastructure will include advanced tertiary filtration, disinfection systems, high-efficiency pumping stations, ring main pipelines along the Outer Ring Road (ORR), and buffer reservoirs to manage peak demand.Since both pipelines will run along the ORR and key roads, they will also serve other industrial clusters such as Ramachandrapuram, Patancheru, BHEL, Sultanpur, Gundlapochampally, Gajularamaram, Jeedimetla, Moula Ali and ALEAP estates. Treated water will additionally be used for firefighting, landscaping and maintaining greenery along the 158-km ORR.Power clustersGiven the energy intensity of data centres, the govt is considering allowing companies open access to meet power needs. Officials highlight that Chandanvelly, Bharat Future City and Fab City have already emerged as key clusters, driven by large land availability, robust infrastructure and proximity to Hyderabad airport.The circular economy project is aimed at positioning Hyderabad as a leader in sustainable urban water management while securing its long-term water future, officials said.By integrating treated wastewater into industrial supply chains, Telangana hopes to achieve ‘green infrastructure’ compliance and attract global firms seeking sustainable operations.The twin push—India’s first data centre city and a PPP-based treated water supply model—signals Telangana’s ambition to combine digital growth with ecological responsibility. As officials put it, the state is determined to ensure that Hyderabad not only leads in data capacity but also sets benchmarks in sustainable urban planning.
