Microsoft has reportedly agreed to buy a 50-acre parcel of land for a new data center campus in Hyderabad, India.

The Business Standard reports the company has finalized a deal with the Telangana government to set up a Rs 15,000 crore ($2 billion) data center campus in Hyderabad on a 50-acre plot of land near the city.

Charminar monument in Hyderabad, India
– Thinkstock/ Aravind Teki

According to sources aware of the development, a formal announcement is likely to come within a month. Microsoft did not comment on questions from Business Standard.

Last July the Business Standard reported the company was said to be in the final stages of talks with the local government to set up a data center in the region.

Microsoft currently has three Azure regions in India in Pune, Chennai, and Mumbai that all opened in 2015. In 2019, Microsoft partnered with Reliance Jio with the local telco to build data centers across India that run Microsoft’s Azure cloud. The first two facilities under the 10-year partnership were two data centers to be developed in the states of Gujarat and Maharashtra.

Microsoft India Development Centre’s in the city was set up in 1998 and is one of Microsoft's largest research and development centers outside Redmond.

AWS has a three-availability zone cloud region in Mumbai that opened in 2016; in 2020 the company announced plans to develop a new region in Hyderabad expected to launch in mid-2022.

AWS also has Cloudfront Edge locations in Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi. The company recently announced plans for a Local Zone Edge facility in India (though it didn’t name the city) to open later this year.

Google has two Indian cloud regions, in Delhi and Mumbai.

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