Amazon Web Services (AWS) has commenced Phase 2 construction at its data center facility near Meerkhanpet in South Hyderabad, marking a significant milestone in its massive $7 billion (over ₹63,000 crore) investment plan to expand cloud infrastructure in Telangana.

The development is part of a long-term strategic framework agreement signed between AWS and the Telangana government in December 2025. Under this commitment, AWS will invest $7 billion over the next 14 years to significantly scale up its data center footprint in the Hyderabad region.

Details of the Meerkhanpet Project

The Meerkhanpet site, located in the southern part of Hyderabad (often referred to as part of the emerging Future City area), is a key component of AWS’s ongoing expansion. Phase 2 work involves advancing civil and infrastructure activities following the completion of initial groundwork in Phase 1.

This expansion will strengthen the AWS Asia Pacific (Hyderabad) Region, which was launched in 2022 as AWS’s second data center region in India after Mumbai. The additional capacity is expected to support surging demand for cloud computing, artificial intelligence (AI) workloads, machine learning, and enterprise digital transformation across India.

Background of AWS’s Hyderabad Investment

• In 2020, AWS announced an initial $2.7 billion investment for the Hyderabad region.
• This was later upgraded to $4.4 billion by 2030.
• The latest $7 billion commitment over 14 years represents a major escalation, making Hyderabad one of AWS’s key growth hubs in India.

The Telangana government has committed to providing comprehensive facilitation measures, including infrastructure support, power, connectivity, and ease-of-doing-business initiatives to accelerate the project.

Strategic Importance for India and Telangana

AWS officials and the Telangana government have highlighted that the expanded Hyderabad AWS Region will play a central role in powering:

• Cloud services for startups and enterprises
• AI and high-performance computing workloads
• Digital initiatives of central and state governments
• India’s growing digital economy

Telangana Chief Minister A. Revanth Reddy has welcomed the investment, stating that it reflects strong global confidence in the state’s governance and vision to become a $3 trillion economy.

Economic and Employment Impact

The project is expected to generate significant direct and indirect employment opportunities in construction, operations, engineering, and support services. It will also boost local ancillary industries supplying power, cooling systems, and networking equipment.

Hyderabad’s emergence as a major data center hub is driven by its reliable power infrastructure, skilled talent pool, and pro-business policies — advantages that have already attracted investments from several global tech giants.

As Amazon continues its aggressive global data center expansion (with plans to spend around $200 billion in capex in 2026, largely on AWS infrastructure), the Hyderabad project underscores India’s rising importance in the global cloud ecosystem.