State Bank of India has been allotted 10 acres of land in Meerkhanpet for a proposed data centre at Bharat Future City, adding another large institutional project to Telangana's growing pipeline of digital infrastructure investments.
The land allocation follows the resolution of a dispute between SBI and the Telangana government over nearly five acres of land in Raidurg. Under the arrangement, seven acres at Bharat Future City have been allotted to the bank in lieu of the disputed property, while SBI will pay for the remaining three acres.
The proposed facility comes as Bharat Future City, located in the Ranga Reddy district, attracts a series of investments linked to data centres, cloud infrastructure and artificial intelligence. The capacity, investment size and development timeline for SBI's proposed facility have not yet been disclosed.
The project will place the country's largest public-sector bank alongside technology and infrastructure companies developing data centre capacity in the region. Data centres have become increasingly important for financial institutions as banking services generate large volumes of digital transactions and require infrastructure for computing, storage, security and business continuity.
Amazon Web Services has already begun work on a data centre project in Bharat Future City. In September, TCS subsidiary HyperVault signed an agreement with the Telangana government to establish a 1 GW AI data centre campus in the region with a proposed investment of ₹70,000 crore.
CtrlS is also developing a 2 GW AI data centre project in Bharat Future City, while authorities are examining a proposal from UPC Volt for a 100 MW facility. Separately, Fortune Hospitality has announced plans for a hyperscale AI data centre park spread across about 170 acres in Kandukur, with an initial proposed investment of ₹60,000 crore.
The investments come as India's broader data centre market expands to accommodate rising demand from cloud computing, artificial intelligence, digital services and enterprise workloads. According to government data, India's installed data centre power capacity increased from around 375 MW in 2020 to 1.57 GW as of August 2026.
For Telangana, the cluster of proposed projects is part of a wider effort to develop Bharat Future City as a destination for technology and AI infrastructure. The addition of SBI's proposed facility further broadens the mix of organisations planning digital infrastructure in the region, extending it beyond hyperscalers and technology companies to the banking sector.
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