Microsoft opens Hyderabad cloud region with zero-water cooling, AI focus

Microsoft has launched its India South Central cloud region in Hyderabad, its fourth such facility in the country, as part of a previously announced $20.5 billion investment. The region uses effectively zero water for cooling, relying on air-cooled chillers, and is built to handle AI workloads from day one. Microsoft India President Puneet Chandok said the facility will be a strategic hub for Asia and the Global South.

Chandok noted that India generates nearly 20 per cent of the world's data but has only 3 per cent of global data centre capacity. The country currently has about 2 gigawatts of capacity, which he expects to grow to 12-14 GW by 2035. Microsoft has contracted 1 GW of renewable energy in India, with 630 MW already flowing. The region is already operational with clients including Adani Group, Bajaj Finserv and HDFC Bank.