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Microsoft Activates Hyderabad Data Center as Strategic AI Hub

By Tech Desk · · Updated 2026-09-21 07:48 UTC
A modern data center building exterior with rows of cooling units and server racks visible through glass windows
Illustration: Tradingbird

Microsoft has activated its Hyderabad cloud region as a zero-water-cooled AI hub, marking its fourth Indian site and second strategic hub. The expansion is supported by significant renewable energy contracts and aligns with a projected six-to-seven-fold increase in India's data center capacity by 2035.

  • Fortune India reports that Microsoft has secured 1 GW of renewable energy contracts in India, with 630 MW already operational, alongside a commitment to replenish 5 million liters of groundwater. CEO Puneet Chandok predicts the nation's data center capacity will grow six to seven times by 2035, driven by surging AI demand.

    Source: Fortune India
  • Microsoft’s new Hyderabad region supports AI workloads with zero-water cooling and aligns with India’s data sovereignty rules.

    Source: Microsoft Source
Based on reporting by Microsoft Source and Fortune India, compiled by the Tradingbird desk.

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