Telangana’s IT and Industries Minister D. Sridhar Babu announced that the state will prioritize electricity for households, farms and factories before allocating power to data centres. He also unveiled a special action plan and incentives to set up IT hubs in tier‑II cities like Nizamabad and Adilabad.

  • Power for data centres will be assessed only after domestic, industrial and agricultural needs are met.
  • The state has launched a special action plan to manage challenges from data‑center expansion.
  • Incentives are being prepared to establish IT hubs in tier‑II cities such as Nizamabad and Adilabad.

Key Points from the Assembly

During a question‑hour on September 11, 2026, D. Sridhar Babu, Telangana’s IT and Industries Minister, emphasized that electricity allocation must first satisfy households, agriculture and industry before considering data‑center requirements. The statement was reported by The Hindu.

Legislative Concerns

Sirpur MLA Palvai Harish Babu raised concerns about the electricity demand of upcoming data centres, arguing that IT services—not data centres—drive job creation. The minister acknowledged these challenges and said a dedicated action plan is already underway.

Read Also:Four Palestine Action activists appeal terrorism sentences after Filton raid

Special Action Plan Details

According to the minister’s office, alternative arrangements—including renewable‑energy integration, smart‑grid management and time‑based supply scheduling—are being prepared to ensure data centres receive adequate power without compromising local consumption.

Push for Tier‑II IT Hubs

MLAs asked whether IT companies would be encouraged to set up in existing IT hubs of tier‑II cities like Nizamabad, reducing youth migration. The minister confirmed that special policies and incentives are under consideration to attract such investments.

Goal of High‑Value Products

While high‑value products are being manufactured elsewhere, Telangana’s skilled software engineers have long performed back‑office work for global firms. The minister announced plans to create high‑value products locally in Hyderabad and tier‑II cities such as Adilabad and Nizamabad.

Why This Matters

BozokMedia analysis shows that Telangana’s power‑first policy could set a precedent for other Indian states grappling with soaring data‑center demand, balancing economic growth with energy security.

"Data‑center expansion must be synchronized with sustainable power planning, otherwise it risks destabilising the broader grid," says energy‑policy analyst Dr. Ramesh Kumar.
Did You Know?: Telangana introduced India’s first "data‑center‑friendly" energy policy in 2024, giving priority to renewable sources.

Frequently Asked Questions

Q1: Will prioritising domestic and agricultural power cause shortages for data centres?
A: No, the government’s grid‑strengthening and renewable‑energy initiatives are designed to meet all demands.

Q2: How will new IT hubs in tier‑II cities affect employment?
A: They are expected to generate quality jobs locally and curb out‑migration of skilled youth.