Go with the value proposition offered by TG, refrain from impulse buying: Industries Official

ASSOCHAM Secretary General Saurabh Sanyal welcomed Commissioner/Director Industries Nikhil Chakravarthi J at a conference organized by the industry body in Hyderabad on Thursday. | Photo credit: Arrangement

Outlining strategies as the Telangana government seeks to attract more data centers, a senior official in the industries ministry on Thursday urged potential investors to refrain from incentive purchases and instead consider the inherent benefits of investing in the state.

“Yes, we would give incentives. But we know our strengths … we know why you’re coming here. So if you keep your expectations a little bit lower, we’ll also be happy to extend our little, whatever (incentive) we can within limited resources. It will help the economy grow and the local economy to flourish,” said Commissioner/Industry Director Nikhil Chakravarthi J.

“This (line of) negotiations will really help move forward quickly. It will help put more resources into creating infrastructure, which in turn will help the industry,” he said at a conference on data centers organized by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). He assured that the government will provide quality infrastructure, electricity and water, cooling systems, all the necessary infrastructure.

Mr. Chakravarthi said there is huge interest among firms to set up data centers in Hyderabad on the back of global leaders Amazon, Meta, Google and Microsoft having a strong presence here, the region being seismically stable and fiber optic connectivity.

Explore the interior

Urging data center firms to consider locating outside Hyderabad, he said: “We would be more than happy to provide much larger land if you go a little further. The emphasis on land use in the State Vision 2047 document will lead to the creation of a radial and regional ring over the next few years, reducing the journey time from the inner ring to the outer ring to around 90 minutes.”

Availability of electricity and water in such locations will be easier compared to Hyderabad, whose water requirements, both domestic and industrial, including data center cooling requirements, must be waived, he said. There are plans to use gray water for cooling systems and introduce district cooling technology, he said.

The senior official urged data center investors to help the state also host manufacturing facilities of firms that are part of the ecosystem. “We want to bring the entire reverse and forward links … we want them to be manufactured here,” he said.

Special Principal Secretary, Ministry of Power Navin Mittal said that Telangana has seen nearly 10% growth in peak power demand this year and is rapidly strengthening the energy ecosystem to meet the growing needs of AI-driven industry and digital infrastructure.

ASSOCHAM said in a report that discussions at the conference highlighted the emergence of Telangana as a strategic digital infrastructure hub supported by progressive policy frameworks, robust connectivity and availability of skilled talent.

Published – 28 May 2026 21:47 IST