Hyderabad,23 May 2026: The Telangana government has officially released the master plan for its dedicated ‘AI City’, a 200-acre specialized hub designed to position Hyderabad as a premier global destination for Artificial Intelligence. This initiative is expected to attract significant international investment and solidify the state’s standing in the global technology landscape.
Chief Minister Anumula Revanth Reddy, during the unveiling ceremony at the T-Hub facility, announced that the AI City would be located in the Mucherla region. The project is designed to provide a comprehensive ecosystem for tech giants, startups, and academic researchers. The infrastructure will include high-performance computing centers, specialized data labs, and co-working spaces tailored for AI-driven development. Officials confirmed that several Fortune 500 companies have already expressed interest in establishing their regional research headquarters within the zone.
The state government has committed an initial investment of ₹2,500 crore for the first phase of the project, which is slated for completion by early 2027. This move aligns with the broader “Digital Telangana” strategy, which seeks to transition the state’s economy toward high-value technology services and product development.
“Our goal is to ensure that Telangana becomes the heartbeat of the global AI revolution. By creating a dedicated AI City, we are providing the necessary infrastructure and policy support for innovators to solve global challenges using intelligence-led technologies,” Chief Minister Revanth Reddy stated during his address.
The announcement follows a series of high-level meetings between state officials and global technology leaders in Silicon Valley earlier this year. Background data indicates that Hyderabad has already seen a 20% year-on-year growth in AI-related job postings, outpacing many other Indian metropolitan areas. The AI City is expected to create over 50,000 direct employment opportunities in the fields of machine learning, data science, and robotics over the next five years.
Looking ahead, the Telangana government plans to introduce a specialized AI policy that offers incentives for hardware manufacturing and software R&D. Market analysts predict that this focused approach will likely draw substantial venture capital into the Hyderabad tech ecosystem, potentially making it the most significant AI hub in South Asia by the end of the decade.
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