Amazon to invest $1.6 bn for 2 data centres in Telangana

Hyderabad: In what could be a big push for Telangana, Amazon Data Services India’s proposal to set up two data centres in the State has got Environmental Clearance (EC) ‘subject to submission of undertaking on certain issues’. 

As per the minutes of the State Environment Impact Assessment Authority meeting held on February 7, the projects’ recommendations by State Level Expert Appraisal Committee (SEAC) has been discussed in detail and approved for issue of EC subject to general conditions.

Amazon is looking to set up two data centres (DCs), one in Meerkhanpet village, Kandukur mandal and another in Chandanvelly and Hythabad village in Shabad mandal of Ranga Reddy district, with an investment of Rs 11,624 crore (approximately $1.6 billion). While the DC in Meerkhanpet village will be spread across 82,883.5 sq metres, the centre in Chandanvelly and Hythabad village will be 66,003 sq metres area.

This massive project is a positive sign for the Telangana government that has been eyeing a major chunk of investments from Amazon India. In addition to having its world’s largest campus outside of the US in Hyderabad, the e-commerce major has its largest fulfilment centre also situated in the State. The setting up of the data centre is seen as a sign of the efforts of IT Minister K T Rama Rao who held discussions with top executives of Amazon Web Services at the World Economic Forum held in Davos recently.

As per the proposals filed by Amazon, the centre in Kandukur mandal will be constructed in the Hyderabad Pharma City industrial area of Telangana



State Industrial Infrastructure Corporation (TSIIC), while the centre in Shabad mandal will come up in Chandanvelly industrial area of TSIIC. Both the projects will be developed in three phases with phase-1 consisting of buildings-1 and Phase-2 and 3 consists of buildings-2.

The decision of Amazon to set up the data centres is the culmination of five-year-long efforts by K T Rama Rao. It was in 2015 when Rama Rao led a delegation of officials to the Amazon headquarters in Seattle, US, and requested it to set up its AWS Data Centre. At that time Amazon cautiously gave an assurance to evaluate the possibilities of setting up the data centres. Later, Amazon set up its largest fulfilment centre at Kothur on the outskirts of Hyderabad.

Telangana government never let go off any opportunity to pursue with Amazon about the possibilities of setting up more centres in Hyderabad. Later, came the Amazon campus in Hyderabad. Meanwhile, Telangana unveiled its policy on data centres and became one of the very few States in the country to do so.

Another issue that could have convinced Amazon, was the speed with which Telangana accorded permissions for setting up its campus. Under the provisions of the TS iPass system, all permissions were given with 11 days. Even during the recent visit of K T Rama Rao to Davos, he called on the Amazon vice-president and pursued the matter with them about the data centres, following which Amazon applied for the environmental clearance for setting up the data centres. This would be one of the biggest investments to be made in Telangana in the recent times, sources indicate.