Hyderabad has emerged as a leading global software development center thanks to the state government's comprehensive ICT (Information and Communications Technology) policy brought in 2016. Not only is it home to a large pool of talented manpower, high quality and low-cost infrastructure, it is also concentrated in India and hence well connected and seperially safe. All these benefits, supported by dedicated data centers policy, will make Hyderabad one of the most attractive investment destinations to set up data centers.

In 2015, Prime Minister Narendra Modi stressed the need for data localization, along with the policy framework and the rules governing it, the country is looking at increasing digitalization. Responding quickly to the country's hope, Telangana IT Minister KT Rama Rao worked on a comprehensive ICT policy, which includes key elements such as data centers policy and cyber security policy, which are aimed at data storage, security and governance.

Telangana has soon formulated a data centers policy dedicated to promoting companies providing data storage as a service and need data storage to see Telangana and Hyderabad as their preferred choice. The location and value benefits offered by Hyderabad will be a destination for data centers. This policy sets a clear roadmap for how the state wants to retain itself in relation to data centers and associated activities. National Payments Corporation of India, an umbrella company, is also setting up a data centre in Hyderabad to manage retail payments and settlement systems.

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