The land forms part of a settlement to the long-running dispute between the state government and SBI over nearly five acres in Raidurg.

Hyderabad: Telangana government has allotted a 10-acre land parcel to the State Bank of India (SBI) in Meerkhanpet for its proposed data centre.

The land forms part of a settlement to the long-running dispute between the state government and SBI over nearly five acres in Raidurg. As part of the arrangement, seven acres in Bharat Future City (BFC) will be given to SBI in lieu of the disputed Raidurg land, while the bank will pay for the remaining three acres, reported Times of India.

The data centre will come up in BFC, which officials in the chief minister’s office describe as one of the country’s emerging hubs for AI and data centre infrastructure, citing several major investments already announced in the region.

Among them, Amazon Web Services (AWS) has begun work on its flagship data centre project in BFC. On September 5, TCS subsidiary HyperVault signed an agreement with the Telangana government to set up a 1 GW AI data centre campus in BFC, with an investment of Rs 70,000 crore.

Separately, Fortune Hospitality has announced plans for a hyperscale AI data centre park spread over 170 acres in Kandukur, Rangareddy district, with an initial investment of Rs 60,000 crore.

A 2 GW AI data centre promoted by CtrlS is already under construction in BFC, while officials are reviewing a proposal from UPC Volt for a 100 MW AI data centre facility.

Connectivity to the region is also set to improve with the construction of the Ratan Tata greenfield road. “Work on greenfield radial road-1, a key access corridor to BFC, has gathered pace. The project is expected to make progress by the time the Invest Telangana Global Summit is held in December,” senior officials said.