Experts Shrug off Tremor Fears for Data Centres in Hyderabad

Hyderabad: Hyderabad, a key hub for data centres in India, remains unfazed by mild tremors felt in the city on Wednesday, reaffirming its position as one of the most preferred destinations for establishing data centres in the country.

Despite the seismic activity witnessed in Telangana on Wednesday, industry experts repose confidence in Hyderabad’s low-risk classification under Seismic Zone II, which historically has been free from significant earthquake threats.

Dr Prashant Thakur, regional director and head of research at Anarock Group, noted that Hyderabad’s low seismic risk has been a major factor in its data centre boom. However, he stressed the importance of proactive safety measures. "The recent earthquake underscores the need for stricter safety norms, even in low-risk zones," said Dr Thakur.

Hyderabad is projected to add over 120 MW of data centre capacity by 2026, driven by growing demand from cloud service providers, which are expanding at an annual rate of 30-35 per cent.

Being in Seismic Zone II, Dr Thakur said Hyderabad faces far less seismic risk compared to cities like Delhi, which is classified under Zone IV.

Data centre development costs in Hyderabad, ranging from ₹5,000 to ₹8,000 per square foot, are significantly lower than in Mumbai or Bengaluru. The city boasts reliable power supplies, Tier-3+ data centre readiness, and robust fibre optic infrastructure.

“Hyderabad is also home to over 4.5 lakh IT professionals, providing a large talent pool for the sector. Telangana’s ICT policy facilitates infrastructure growth with subsidies and single-window clearances,” he said.

Despite these advantages, certain concerns have emerged as Hyderabad’s urban landscape evolves. Rapid growth may strain groundwater resources, potentially affecting structural stability. Increasing urban heat and occasional flooding could pose operational challenges for data centres.

He emphasised the need for developers to prioritise seismic safeguards, disaster recovery systems, and environmental monitoring to ensure resilience in this fast-growing sector. "Hyderabad’s competitive edge lies in its ability to adapt and remain secure amidst evolving risks," he added.

As Hyderabad continues to attract global data centre investments, the focus on sustainability and disaster readiness will be crucial in solidifying its position as a leader in India’s data centre landscape, he said.

The ground shook

The Godavari region has experienced several earthquakes in the last five years

2023: Tree earthquakes, M 1.9 to 3.2

2022: Four earthquakes, M2.3 to 3.4,

2021: Three earthquakes, M1.6 to 4.2

2020: Three earthquakes, M2.0 to 2.8

2019: One, M 3.1)

Data by NGRI chief scientist Dr M. Sekhar

Pretty big

Wednesday’s quake was the third biggest in terms of magnitude

1969: Bhadrachalam, M 5.7

2012: Ongole, M 5.4 (in AP)

2024: Medaram, M 5.3

1983: Medchal, M 4.8

2021: Pulichintala, M 4.6

Data by NGRI director Dr Prakash Kumar

M refers to magnitude in the Richter scale