Whalesbook
Landmark Data Centre Investment in Telangana
On January 22, 2026, during the World Economic Forum annual meeting in Davos, Switzerland, UPC Volt, a joint venture between Netherlands-based UPC Renewables Group and VOLT Data Centers, signed a Memorandum of Understanding (MoU) with the Telangana government. This agreement signals an investment of ₹5,000 crore over five years to establish a 100 MW AI-ready data centre in Bharat Future City, Telangana [2, 10, 11, 13, 15, 27]. The project is anticipated to generate over 3,000 direct and indirect jobs during its construction phase and more than 800 jobs during operations [2, 10, 11, 13, 15, 27]. This initiative aligns with the state's 'Telangana Rising 2047' vision, aiming to bolster Telangana's position as a premier AI data centre hub in India [2, 10, 11, 12, 13, 16, 27].
Sustainable Power for Advanced Computing
A key feature of the UPC Volt project is its commitment to powering the data centre with a dedicated 100 MW round-the-clock renewable energy facility. This ensures the digital infrastructure will operate on carbon-free energy, supporting the state's net-zero development objectives [2, 10, 11, 13, 27]. The facility will be integrated with Telangana's Green Open Access framework, promoting a sustainable, 'power-first' operational model essential for hyperscale and AI workloads [2, 10, 11, 13, 27]. Telangana's proactive approach includes positioning itself to attract next-generation compute infrastructure by offering incentives for high-density GPUs, large-scale training compute, and advanced liquid cooling technologies [2, 11, 16, 27]. The state also has established policies such as the Telangana AI Framework and Data Analytics Policy to foster innovation and infrastructure development in these areas [22].
Strategic Vision and Economic Goals
The investment underscores Telangana's ambition to achieve a $3 trillion economy by 2047, driven by high-calibre digital infrastructure [2, 8, 10, 11, 12, 27]. Chief Minister A. Revanth Reddy highlighted the importance of this development for building robust digital infrastructure while adhering to net-zero development roadmaps [2, 8, 10, 11, 27]. Minister for IT and Industries, D. Sridhar Babu, who was instrumental in securing the investment, emphasized Telangana's aggressive push to become a global AI data centre hub [2, 11, 16, 27]. The state is structuring its economic growth through three distinct zones dedicated to the service sector, manufacturing, and agriculture, aligning with its broader 'Telangana Rising 2047' roadmap [2, 11, 27].
Company Background and Broader Context
UPC Volt is a joint venture formed by UPC Renewables Group, which has a substantial portfolio of wind and solar projects in India and across the Asia-Pacific region [3, 4, 6, 7, 9], and VOLT Data Centers, a company focused on developing and operating 'AI Factories' globally with an emphasis on scale, sustainability, and resilience [5, 14]. This collaboration aims to leverage their combined expertise in renewable energy and advanced data centre infrastructure to meet the growing demands of the artificial intelligence sector.