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Cloud is the limit for Hyderabad's office market now
Bengaluru: Hyderabad's property market is poised for a fresh demand upcycle after global hyperscalers Amazon, Microsoft, and Google committed a combined $67 billion to expand cloud, AI, and data-centre infrastructure in India with large portions earmarked for Andhra Pradesh.
Industry experts say the scale and nature of these investments-focused on sovereign cloud regions, AI compute hubs, and hyperscale data centres-will significantly lift demand for Grade A office space, large land parcels, and powered, compliant data-centre campuses, with Hyderabad emerging as one of the biggest beneficiaries alongside Bengaluru, Pune and Mumbai.
"These investments are not incremental IT expansions. They represent long-horizon infrastructure commitments that lock in real estate demand for the next decade," said Quaiser Parvez, COO, Knowledge Realty Trust. "Hyderabad, with its pro-investment policy environment, availability of large contiguous land parcels, and improving power and fibre infrastructure, is particularly well placed."
While global tech firms have moderated office leasing over the past two years due to hybrid work and cost optimisation, hyperscaler-led expansion is expected to reverse this trend. Cloud engineering teams, AI researchers, platform development units, and enterprise support functions require high-density, collaborative office environments, driving demand for large-format, high-spec campuses.
Developers and consultants expect a renewed focus on prime micro-markets in Hyderabad such as Hitec City, Gachibowli, Kokapet, and the financial district, where vacancy levels could tighten as tech occupiers pre-commit to future supply.
"The scale of multinational investments is reshaping India's office and digital infrastructure demand," said Ramesh Nair, CEO and managing director, Mindspace REIT. "Global cloud and AI players require large, scalable assets with high sustainability, security and power standards, raising the bar for offices and data centres. This is driving sustained absorption, rental upside and preference for institutional, future-ready assets across hubs such as Hyderabad, MMR, Pune and Bengaluru."
Hyderabad is emerging as a key data-centre hub due to relatively lower land costs compared with Mumbai, faster approvals, and improving grid stability. Large investments by global tech firms are expected to accelerate land acquisitions on the city's outskirts and alongside growth corridors, boosting demand for industrial-zoned plots, long-term power purchase pacts, and infrastructure-linked developments.
"Each hyperscale data-centre campus triggers a multiplier effect-land absorption, power infrastructure, water management and supporting office space for operations and engineering teams," said Surajit Chatterjee, managing director and head, data centre, India, CapitaLand Investment.
Source: The Economic Times