Japanese firms to invest Rs 10,500 crore in Hyderabad for AI Data Centre Cluster

The upcoming ₹10,500 crore AI facility in Hyderabad will comprise a 400 MW data center cluster, designed to host the country’s most powerful AI supercomputing infrastructure with 25,000 GPUs.

Published Apr 18, 2025 | 6:31 PMUpdated Apr 18, 2025 | 6:31 PM

The MoUs were signed in the presence of Telangana Chief Minister A Revanth Reddy, during a high-level investment meeting.

Synopsis: The Government of Telangana signed two MoUs with Japanese firms for establishing an AI Data Centre Cluster in Hyderabad and a manufacturing facility for surge arresters.

NTT DATA, a global leader in digital transformation and IT services, and Neysa Networks, an AI-first cloud platform company, on Friday, 18 April, signed a tripartite Memorandum of Understanding (MoU) in Tokyo with the Telangana government to establish an AI Data Center Cluster in Hyderabad with an investment of ₹10,500 crore.

The MoU was signed in the presence of Telangana Chief Minister A Revanth Reddy, during a high-level investment meeting.

The upcoming facility in Hyderabad will comprise a 400 MW data center cluster, designed to host the country’s most powerful AI supercomputing infrastructure with 25,000 GPUs. The project aligns with Telangana’s vision to be the AI capital of India, offering sovereign, scalable, and sustainable compute capabilities to support public and enterprise AI workloads.

This collaboration combines NTT DATA’s global data center leadership with Neysa’s AI acceleration platform, enabling joint development of AI-first solutions and creating a vibrant innovation ecosystem anchored in Telangana.

The project will be powered through a mix of grid and renewable energy (up to 500 MW), adopt cutting-edge cooling technologies like liquid immersion, and adhere to the highest ESG standards. The campus will also foster AI talent through partnerships with Telangana’s academic institutions and contribute to the state’s digital public infrastructure mission.

The chief minister, speaking on the occasion, said: “Telangana offers policy stability, strategic location advantage, reliable and high quality electric power, skilled talent, quick clearances through single window system to foster critical AI infrastructure and make the state leader in AI related digital services. The investment announcement by NTT, closely follows recent big ticket data centre projects by AWS, STT, Tillman Holdings and CtrlS and reiterates Hyderabad’s dominant position as India’s leading data centre hub.”

He further said: “Telangana offers policy stability, reliable power, skilled talent, and the fastest clearances through our single-window system – to make your investment smooth and secure. We welcome NTT Data as it begins a long-term partnership to power the next generation of AI and digital services from Hyderabad,” Revanth Reddy said. “On behalf of all my people of Telangana – Arigatō Gozaimasu. Or in my Telugu language, Dhanayavadalu (thank you).”

Headquartered in Tokyo, NTT DATA is a global leader in IT services, data centers, and digital transformation, employing 193,000 people across more than 50 countries. Ranked among the world’s top three data center providers, it operates 150+ facilities globally and serves sectors including public services, BFSI, healthcare, manufacturing, and telecom.

Neysa is an AI-first cloud platform company focusing on delivering sovereign, scalable, and industry-specific AI compute solutions. Neysa is driving GenAI adoption by enterprises through a unified AI stack and strategic partnerships across sectors.

Those present included senior leadership from NTT DATA and Neysa Networks, including Ken Katsuyama (SVP, NTT Corporation; Board Member, NTT DATA Inc.), Tadaoki Nishimura (Director & SVP, NTT DATA Inc.), Alok Bajpai (Managing Director – India, NTT Global Data Centers), and Sharad Sanghi (Co-founder & CEO, Neysa; Chairman, NTT Global Data Centres India).

Also Read: Marubeni to set up industrial park in Telangana’s Future City

MoU with Toshiba

In another development, Toshiba Transmission Distribution Systems (India) Private Limited (TTDI) has decided to enter into a collaboration with Telangana to drive investment and innovation in products and solutions for addressing needs of the transmission and distribution sector.

TTDI, a wholly-owned subsidiary of Toshiba Corporation, Japan, and a global leader in the supply of Transmission-cum-Distribution (TCD) equipment for both conventional and renewable energy sources, has signed an MoU with the Government of Telangana to establish a new manufacturing facility for surge arresters and expand its existing manufacturing facilities for power and distribution transformers and gas insulated switchgear (GIS) at its Rudraram plant in Telangana. ‘

This investment underscores TTDI’s commitment in providing Innovative Products and Solution for TCD sector and reinforcing Telangana’s position as a premier destination for global technology and industrial investments.

The MoU was signed by Special Chief Secretary of Telangana Jayesh Ranjan, and Hiroshi Furuta, Chairman and Managing Director, TTDI Telangana in the presence of the chief minister and Hiroshi Kaneta, Director, Energy Business Toshiba Corporation.

With a planned investment of ₹562 crore, the project will feature modern technologies, enhancing existing capacities to contribute towards the growing demand in the TCD sector. This initiative is in line with Telangana’s vision to attract high-value investments, strengthen the state’s power sector growth plan, industrial capabilities, and create employment opportunities in the region.

Hiroshi Furuta said, “Telangana’s forward-looking policies, strong industrial ecosystem, and commitment to innovation make it an ideal destination for our latest investment. We are excited to collaborate with the Government of Telangana to drive technological advancements, accelerate economic growth, and create a skilled workforce for the future. This investment underscores our long-term commitment to India and our vision to shape the future of the power sector.”

RTDI is a global leader in the supply of Transmission C Distribution Equipment for both conventional and renewable energy sources. TTDI offers a range of innovative and reliable products and solutions for the renewable energy sector like power transformers, distribution transformers, gas-insulated switchgear and inverter duty transformers.

(Edited by Majnu Babu).

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