Amazon to Set Up Two Data Centres in Telangana Worth Rs 11,624 Crore

In Telangana, Amazon has sought environmental clearance for the construction of two data centres for Rs 11,624 crore ($1.6 billion).

The data centres are likely to come up at two locations on the outskirts of Hyderabad in Ranga Reddy district. For the high-end computer and storage equipment that would be housed at these two data centres, over 90 per cent of the investment would be made. These data centres would help in developing an Amazon Web Services region in Telangana state.

However one data centre is offered at Chandanvelly village in Shabad mandal, the other is anticipated at Meerkhanpet village in Kandukur mandal. Under Hyderabad Pharma City this is already part of the land parcel project of the State government.

The Amazon Data Services India Private Limited (ADSIPL) tenders seek environmental clearance for building the data centres have already been recommended by the State Expert Appraisal Committee (SEAC) of Telangana in the meeting which was held on January 31. As per the documents provided by the ADSIPL inclusive of a proposal seeking environmental clearance which is accessed by TNIE. The construction area of the data centre at Chandanvelly is 66,003 square metres (sq.m.), and at Meerkhanpet, it is 82,833 sq.m.

One needs to apply for environmental clearance for any construction project with a construction area that exceeds 20,000 sq.m according to the Environment Impact Assessment notification, 2006. As per a letter sent by the IT department of the Telangana government to Telangana State Industrial Infrastructure Corporation (TSIIC) dated December 9, other than these two locations, the Telangana State government also decided to assign land to Amazon in Maheshwaram, Ranga Reddy district to develop data centres at Raviryala.

Amazon plans to exploit the data centre market in India, which was recently raised to reach $4 billion by 2024, supported by the rise in cloud computing, big data and IoT services. Besides, the surge in Internet and smart device users in India and the State and Central governments plans to migrate traditional services to digital platforms may work in its support.