NTT DATA, Neysa ink MoU with Telangana govt to set up Rs 10,500 Cr AI data centre cluster

NTT DATA, a leading IT services company, and Neysa Networks, an AI-first cloud platform company, on Friday signed a tripartite Memorandum of Understanding with the Telangana government to establish an AI Data Centre Cluster in Hyderabad, with an investment of Rs 10,500 crore.

The MoU was signed in the presence of Chief Minister A Revanth Reddy during his ongoing visit to Japan.

Senior leadership from Tokyo-headquartered NTT DATA and Neysa Networks participated in the signing ceremony.

The upcoming facility in Hyderabad will feature a 400 MW data center cluster, designed to host the country’s most powerful AI supercomputing infrastructure with 25,000 GPUs, according to an official release.

The collaboration combines NTT DATA’s global leadership in data centers with Neysa’s AI acceleration platform, enabling the joint development of AI-first solutions and creating a vibrant innovation ecosystem anchored in Telangana, it said. 

Welcoming the mega investment, CM Revanth Reddy said Telangana offers policy stability, strategic location advantages, high-quality electric power, skilled talent, and quick clearances through a single-window system—all of which foster critical AI infrastructure and position the state as a leader in AI-related digital services.

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In another development, Toshiba Transmission and Distribution Systems (India) Private Limited (TTDI), a wholly-owned subsidiary of Japan’s Toshiba Corporation and a leader in supplying transmission and distribution (T&D) equipment for both conventional and renewable energy sources, signed an MoU with the Telangana government to establish a new manufacturing facility for surge arresters.

The company will also expand its existing manufacturing facilities for power and distribution transformers and gas-insulated switchgear (GIS) at its Rudraram plant in Telangana, it said. 

With a planned investment of Rs 562 crore, the project will feature cutting-edge technologies, enhancing existing capacities to meet the growing demand in the T&D sector.

This initiative is part of TTDI’s broader vision to design, develop, and manufacture T&D products for applications up to the highest voltage levels in India, in support of the Government’s “Make in India” initiative.

Separately, speaking at an investment roadshow hosted by the Telangana government in Tokyo, the Chief Minister invited investors to consider the state as a ‘China Plus One Alternative’—a strategy that encourages businesses to diversify manufacturing and supply chains beyond China.

"We offer world-class infrastructure, skilled talent, and clear, consistent policies to support your investment in several priority sectors like life sciences, GCCs, electronics, EV and energy storage, textiles, food processing, AI data centers, and logistics. Let us build something extraordinary—for India, Japan, and the world," he said.

The roadshow reaffirmed Telangana’s commitment to building sustainable, innovation-driven partnerships with Japan. 

It was followed by several one-on-one meetings between the Telangana delegation and top Japanese business conglomerates, an official release said.