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Data Centres Policy 2016

Data Centres Policy 2016 · Telangana Data Centres Policy

Instrument
No G.O. number, date or gazette citation on any of its 25 pages 1 12
Issued by
ITE&C Dept., Govt. of Telangana
Reviewed
23 Oct 2026

Intent

Position Hyderabad as "a major Data Centre Hub" and promote local manufacture of servers and racks. The policy says it wants to "tap into this expected growth and attract investments into the State".

Source 1 p.7 4 p.7

Mechanism

  1. 1 Classify as essential Data centres are placed in "Essential Services", exempt from statutory power cuts and most routine inspections. 1 p.26
  2. 2 Promise power The state "shall establish dual power grid networks", allow renewable open access up to one third of demand, and supply power "at the cost of generation" to "eligible" firms under guidelines. 1 p.19
  3. 3 Offer land and a Campus The state "shall earmark a land parcel" for a Data Centres Campus with state-paid security, and routes building permissions through TS-iPASS. 1 p.17
  4. 4 Create demand, add incentives The state assures "ten percent of the business" to Campus players, offers a state-paid Startup Data Centre, a building-fee rebate up to 50% and subsidised land, both set by CCITI. 1 p.21 1 p.25
AWS invested, Hyderabad region
More than $1.3 billion
Amazon’s own figure. The state’s 2022-23 report records the commitment as Rs 36,300 crore
Amazon’s report of cumulative investment in the AWS (Asia Pacific) Hyderabad Region. Announced commitment: Rs 36,300 crore
End 2025 (published 15 Jul 2026) Source Self-reported 9 6 p.7
Data-centre capacity operating, Hyderabad
About 52 MW
A company estimate. No official capacity figure was found
CtrlS’s estimate in its own release
Jan 2025 Source Self-reported 11
Data-centre proposals, Davos 2025
Rs 1,04,500 crore proposed
Proposed, not invested
Proposed investments in "AI, Cloud Services, and Data Centers" across six firms, state-wide
Jan 2025 (Outlook Mar 2025) Source Official claim 8 pp.98-99 8 p.113
Government business assured to Campus players
10%
No document read reports a Campus, or any business routed to it
The policy’s assurance "to players with presence in the Data Centres Campus"
2016 policy (undated) Source Instrument 1 p.21

Signals

The questions readers ask, answered in 25 words or fewer. Open "Why" for the reasoning.

  1. Key signal · Caution Derived Self-reported

    Is the $4.4 billion AWS figure money invested?

    No, it is announced

    No. Rs 36,300 crore is an announced commitment. AWS reports over $1.3 billion invested in its Hyderabad region by the end of 2025.

    Why

    The state’s 2022-23 report says AWS "committed to invest Rs. 36,300 Cr". The $4.4 billion figure appears in no document read; it matches that rupee amount at about Rs 82.5 per dollar. The $1.3 billion is Amazon’s own number for its Hyderabad region, and the state’s Davos 2025 list adds a separate Rs 60,000 crore proposal.

    6 p.7 9 8 p.99 Evidence →
  2. Caution Source Instrument

    Does "essential service" guarantee uninterrupted power?

    Not a power guarantee

    No. Under the Essential Services Maintenance Act the label only lets the state ban strikes; the power-cut exemption and dual grid are separate promises.

    Why

    Item 2 exempts data centre firms "from the purview of statutory power cuts", and item 5 declares them essential under the Act with no notification cited. The Act lets the Government "prohibit strikes in any essential service" by orders "in force for six months only"; it says nothing about power supply. The power section says the state "shall establish dual power grid networks"; no clause guarantees supply.

    1 p.26 1 p.19 1 p.24 13 s.3 Provisions →
  3. Open Source Instrument

    Has the state built the dual power grid and the Data Centres Campus?

    Not reported

    Not reported. The policy says the state "shall establish" dual grids and "shall earmark" Campus land; no document read says either exists.

    Why

    The annual reports mention a "State Data Centre", which is a government e-governance facility and not the Campus. Company projects in the sources sit in industrial parks such as Chandanvelly and, from 2026, Bharat Future City. The state does not report the ten-percent business assurance or the Startup Data Centre either.

    1 p.17 1 p.19 6 p.7 8 p.82 9 Evidence →
  4. Caution Derived Instrument

    What do I get, who decides, and how do I claim it?

    Discretionary, unpublished

    No claim route is published. CCITI sets land and building-fee terms; TS-iPASS covers building permissions; power-at-cost and fuel terms await "operational guidelines" not found.

    Why

    The policy gives an up-to-50% rebate on building fees and subsidised land, both "as decided by CCITI". It says power at cost of generation goes to "eligible data centres" and fuel below market price to "eligible players", details "in the operational guidelines". The department’s downloads page lists no data-centre guidelines (it does list IMAGE guidelines).

    1 p.19 1 p.25 1 p.17 12 Provisions →
  5. Open Source Instrument

    Is it still in force?

    Unclear

    Unclear. The scan states no period and no date; the department still serves it, and no document read repeals or replaces it.

    Why

    Other 2016 policies carry a stated period in their G.O.s (per the rollout plan, not re-read here); this document states none. The 2022-23 report says the 2021-26 ICT policy "focuses on areas such as data centers" but does not say it replaces this policy. The PDF sits under an uploads/2025/06/ path and has no web-archive copy.

    1 p.27 12 6 p.6 Provisions →
  6. Caution Derived Self-reported

    How much data-centre capacity runs in Hyderabad, against what is proposed?

    Proposals far exceed operating

    In January 2025 CtrlS estimated 52 MW operating in Hyderabad; the state’s Davos list proposes 400 MW (CtrlS) and 150 MW (Blackstone).

    Why

    The 52 MW is CtrlS’s estimate in its own release, not an official statistic. The Outlook’s table is headed "proposed investments" and does not state the location of the 400 MW. CtrlS’s own release says "over 600 MW" when fully developed, so the proposed figure differs by document.

    11 8 p.99 Evidence →
  7. Finding Derived Instrument

    Is the incentive package specific to data centres?

    Partly the IT package

    Partly. The policy adopts the IT/ITeS incentives by reference and repeats four on the same terms, but adds six power and building items.

    Why

    The policy says the IT/ITeS incentives "shall be applicable for data centre firms", and repeats open access, the SME lease subsidy, R&D grants and the strategic-project package on the same terms in different words. Four items differ, including a lower patent cap and a capped startup internet subsidy. Six have no IT/ITeS counterpart: dual grids, captive power, power at cost, power backup, fuel and a building-fee rebate.

    1 p.19 1 p.25 3 p.13 3 p.15 3 p.16 Provisions →

Provisions

Source
Essential service Unclear
Data centre firms "are declared as essential service under TS Essential Services Maintenance Act"; the Act’s text and any order were not found. 1 p.26
Power-cut exemption
Exempt from "statutory power cuts". 1 p.26
Pollution-law exemption
Exempt from the Telangana Pollution Control Act, except IT parks/SEZ campuses over 20,000 sq.mt., which need SEIAA permission. 1 p.26
Inspection exemption
No inspections under seven labour and shops Acts except on specific complaints; self-certificates allowed. 1 p.26
Night shifts
General permission for three-shift operation with women working at night. 1 p.26
Dual power grids
The state "shall establish dual power grid networks". 1 p.19
Renewable open access
Up to one third of power needs, after paying the cost component to DISCOMs fixed by the ERC. 1 p.19
Power at cost Unclear
Power "at the cost of generation" to "eligible data centres"; details in "operational guidelines" not found. 1 p.19
Fuel and backup Unclear
Fuel "at a price lower than the market rates" to eligible Campus players; backup power "explored" at a subsidised cost. 1 p.19
Data Centres Campus
The state "shall earmark a land parcel" for a Campus with built-up space for SMEs, fibre, water and state-paid security. 1 p.17
Building permissions
Included under building permission rules; applications through the TS-iPASS single window. 1 p.17
Government business
"assure ten percent of the business to players with presence in the Data Centres Campus". 1 p.21
Startup Data Centre
Services in the Campus "completely paid for by the Government" for startups incorporated in Hyderabad. 1 p.21
Fiscal incentives
General IT/ITeS incentives apply; building-fee rebate up to 50% and land at subsidised cost, both as decided by CCITI. 1 p.25
Startup/SME incentives
25% lease subsidy up to INR 5,00,000 a year for 3 years; R&D grant; 25% internet reimbursement up to INR 2,50,000; patent costs up to INR 2,00,000 (India) and INR 10,00,000 (foreign). 1 p.25

Who it affects

  • Data centre firms Benefit Essential-service classification and exemptions; "eligible" firms for power at cost. 1 p.19 1 p.26
  • Large companies in the Campus Benefit May procure government land and build their own facility. 1 p.17
  • SMEs and startups in the Campus Benefit Built-up space; startups incorporated in Hyderabad get a state-paid Startup Data Centre. 1 p.17 1 p.21 1 p.25
  • DISCOMs Duty Supply renewable open access subject to the ERC-fixed cost component. 1 p.19
  • CCITI and "concerned ministers" Mandate Decide land cost and the building-fee rebate. 1 p.25
  • State departments Mandate The state is promised as a customer: "ten percent of the business" and hardware procurement from Telangana makers. 1 p.21 1 p.23
  • Electronics hardware makers Benefit Electronics Policy 2016 benefits and "tailor made packages" for data-centre stack makers. 1 p.23

Evidence

What the record shows, with its basis and date. State figures are labelled as state-reported.

Measure Value As of Grounding and sources
AWS commitment"announced ... and committed to invest" Rs 36,300 crore FY 2022-23 Source Official claim 6 p.7
Amazon Data Services, three data centres"setting up three Data Centres in Fab City, Pharma City and Chandanvelly" Rs 20,761 crore ($2.77 Bn) FY 2020-21 Source Official claim 5 PDF p.8
AWS proposed, Davos 2025"proposed investments" Rs 60,000 crore Jan 2025 Source Official claim 8 p.99
AWS invested, Hyderabad region"By the end of 2025, Amazon invested" More than $1.3 billion End 2025 Source Self-reported 9
CtrlSDavos 2025 table Rs 10,000 crore proposed, 400 MW Jan 2025 Source Official claim 8 p.99
CtrlS Chandanvelly allotmentTGIIC Table 5.1 Rs 250 crore proposed, 120 jobs proposed 2024-25 Source Statistic 8 p.82
Hyderabad operating capacity"presently has an estimated 52 MW operational capacity" About 52 MW Jan 2025 Source Self-reported 11
Microsoft region"now-live India South Central datacenter region in Hyderabad" Live, with "three-zone architecture" 21 Sep 2026 Source Self-reported 10
Microsoft India commitment"its US$20.5 billion commitment to the country" US$20.5 billion (India-wide) 21 Sep 2026 Source Self-reported 10
Web Works"announced plans to build data centres in the state" Rs 52 billion planned 2024 Source Official claim 7 p.197

Data warnings

  • The power section promises captive-power support with an "initial investment subsidy as detailed under the Incentives section". The Incentives list on printed p.25 contains no such item.
  • The record’s $4.4 billion, $2 billion and Yotta 25,000 GPUs appear in no document read. A figure shown as "$4.4 billion" is a conversion of Rs 36,300 crore, not a quoted number.
  • Every company figure above is an announcement, proposal or self-report. None is an audited or statistical count of investment.
  • "State Data Centre" (SDC) is a government facility. It is not the Data Centres Campus and not a private data centre.
  • Amazon figures are not additive: Rs 20,761 crore (FY 2020-21), Rs 36,300 crore (FY 2022-23), Rs 60,000 crore proposed (Davos 2025) and the US$21 billion India plan (2026-30). The documents do not say whether any restate another. 5 PDF p.8 6 p.7 8 p.99 9
  • CtrlS’s capacity differs by document: 400 MW and "over 600 MW" when fully developed. 8 p.99 11
  • The policy PDF is a scan with no date. Its printed page is the PDF page plus 3. 1

Gaps in the record

  • No source credits this policy with any investment. "Can the investment be credited to the policy?" has no sourced answer.
  • No issue date, G.O. number, period of force or successor appears in the policy.
  • The "TS Essential Services Maintenance Act" text, and any order declaring data centres under it, was not found or read.
  • No operational guidelines (power at cost, fuel, "eligible") were found.
  • No source reports the dual grid, the Data Centres Campus, the Startup Data Centre or any use of the ten-percent assurance.
  • No official installed capacity (MW). The only operating figure is a company estimate.
  • No count of firms that claimed any incentive.
  • No source found for Microsoft $2 billion or Yotta 25,000 GPUs.
  • The policy PDF has no web-archive copy; the live URL is the only one found.

Watch

Confirmed, announced and expected changes are kept apart. Forecasts are not facts.

  • Announced Amazon plans over US$21 billion for cloud infrastructure in India (not Hyderabad alone) 2026 to 2030 9
  • Announced Microsoft plans "additional Azure and AI services" for the Hyderabad region "in the coming months" (Sep 2026) 10
  • Announced CtrlS Chandanvelly park, "potential" 600 MW when fully developed Not dated 11

Connections

  • Issued with Cyber Security, Data Analytics and Open Data policies 2016 Unveiled the same day. 4 p.6
  • Sibling ICT Policy Framework 2016 The ICT framework (Apr 2016) names data centres as a core requirement and a Campus as a possible cluster; this policy is a standalone sibling. 1 p.15 2 p.24
  • Integrated with TS-iPASS Building-permission applications use the single window. 1 p.17
  • Integrated with Incentives for Expansion of IT/ITeS General incentives apply to data centre firms. 1 p.25 3 p.16
  • Integrated with Electronics Policy 2016 Its benefits apply to data-centre hardware makers. 1 p.23
  • Integrated with Innovation Policy Named as an additional source of incentives. 1 p.25
  • Mentioned in ICT Policy 2021-26 The 2022-23 report says it "focuses on areas such as data centers"; nothing says it replaces this policy. 6 p.6

Trajectory

Dates are shown only as precisely as the source gives them.

  1. 1 4 Apr 2016 ICT Policy launched; the policy later calls data centres a core requirement of its growth plans 1 p.15
  2. 2 15 Sep 2016 Data Centres Policy unveiled at HICC with Cyber Security, Data Analytics and Open Data policies 4 p.6
  3. 3 By 2021 Amazon Data Services reported as setting up three data centres in Fab City, Pharma City and Chandanvelly (Rs 20,761 crore) 5 PDF p.8
  4. 4 2022 AWS launches infrastructure in Hyderabad (AWS’s own statement) 9
  5. 5 By 2023 AWS announced to set up data centres, Rs 36,300 crore committed; Microsoft announced three more data centres at WEF Davos 6 p.7
  6. 6 Jan 2025 State lists Rs 1,04,500 crore of data-centre proposals at WEF Davos 8 pp.98-99
  7. 7 20 Jan 2025 CtrlS announces plans for a data-centre park at Chandanvelly 11
  8. 8 By 15 Jul 2026 AWS breaks ground on a new Hyderabad data centre; reports over $1.3 billion invested by end-2025 9
  9. 9 21 Sep 2026 Microsoft says its Hyderabad datacenter region is live 10

Sources

Source Derived Interpretation
  1. primary Data Centres Policy 2016 ITE&C Dept., Govt. of Telangana · Undated · Image-only 25-page scan with no date, G.O. number or gazette citation. No web-archive copy exists; the live URL is the only one found. Page numbers are printed pages (PDF page plus 3); p.26 is inferred.
  2. primary Telangana ICT Policy Framework 2016 ITE&C Dept., Govt. of Telangana · Apr 2016
  3. primary Incentives for Expansion of IT / ITeS Companies ITE&C Dept., Govt. of Telangana · Undated, no G.O. number printed. Only the renewable open-access and SME lease-rental passages were read.
  4. primary IT&EC Department Annual Report 2016-17 ITE&C Dept., Govt. of Telangana · Jun 2017 · The only annual report that names the policy.
  5. primary IT&EC Department Annual Report 2020-21 ITE&C Dept., Govt. of Telangana · Jun 2021
  6. primary IT&EC Department Annual Report 2022-23 ITE&C Dept., Govt. of Telangana · Jun 2023 · The last report in the series.
  7. primary Socio Economic Outlook 2024 Planning Dept., Govt. of Telangana · Jul 2024
  8. primary Socio Economic Outlook 2025 Planning Dept., Govt. of Telangana · Mar 2025
  9. secondary AWS breaks ground on new data centre in Hyderabad Amazon India · 15 Jul 2026 · The company’s own release. It does not name the policy.
  10. secondary AI ambition into action: Microsoft brings AI-ready capabilities across its India cloud infrastructure, establishes India South Central region as a strategic hub for Asia and global south Microsoft Source Asia · 21 Sep 2026 · The company’s own release. It does not name the policy.
  11. secondary CtrlS Unveils Plans for new Datacenter Park on a 40-Acre Land Parcel Near Hyderabad CtrlS Datacenters Ltd · 20 Jan 2025 · The company’s own release. It states no rupee or dollar amount and does not name the policy.
  12. primary ITE&C Department downloads page ITE&C Dept., Govt. of Telangana · read 23 Oct 2026 · Lists the Data Centres Policy 2016 with no date and no operational guidelines.
  13. primary The Telangana Essential Services Maintenance Act, 1971 (Act 20 of 1971) India Code, Legislative Department · Adapted by G.O.Ms.No.45, Law (F), 1 Jun 2016; read 24 Oct 2026 · Nine sections. Section 3 lets the Government prohibit strikes in a declared service by six-month orders. No section concerns power supply.

Signals and summaries are written by Social Systems Lab from the sources above. They describe the law and the public record, not legal advice.