Telangana to build 200-acre AI City as hub for innovation and smart urban growth

Telangana IT, Industries, and Commerce Minister D Sridhar Babu on Sunday announced the government’s ambitious plan to establish a dedicated 200-acre AI City near Hyderabad as part of the upcoming Future City project, positioning the state as a national hub for artificial intelligence, innovation, and technology-driven urban development.

Speaking at concluding day of the 15th edition of the Naredco Telangana Property Show 2025, the Minister said the government is preparing a comprehensive plan to train and equip the workforce for the AI era.

“We believe in preparing people for the future. Talent will be at the center of our AI mission,” he said, adding that the groundbreaking ceremony for the AI City is scheduled for December-January.

The proposed AI City will host world-class IT and product companies, global capability centers (GCCs), and innovation clusters. “We are replicating an ecosystem that encourages innovation, research, and collaboration. This will be a dedicated zone for cutting-edge technological advancements,” Sridhar Babu said.

The Future City project, which will include manufacturing, education, sports, entertainment, and residential zones, is being meticulously planned and is expected to be finalized by December, following Chief Minister A. Revanth Reddy’s directions. The Minister said this zoning will ensure balanced development and sustainability for Hyderabad’s future growth.

Highlighting Hyderabad’s rapid expansion, Sridhar Babu shared insights from a recent traffic study by a Mumbai-based consultant, which projected that the PVNR Expressway corridor would soon face congestion with over 12,000 cars during peak hours due to increasing construction activity. “Hyderabad is growing fast, and we must act now to avoid the kind of traffic chaos seen in other metro cities like Bengaluru,” he said.

To ease mobility and promote balanced urbanisation, the Minister said the government is focusing on developing all four corners of Hyderabad. Plans are underway to extend the Metro Rail to Shamirpet with two elevated corridors under Phase 2 of the Metro project, alongside major beautification works across the city.

Sridhar Babu also underlined the need for long-term connectivity through the Regional Ring Road (RRR), which he described as “critical to linking Hyderabad with all districts.”

The RRR, he said, would stimulate regional economic growth, attract investments, and improve logistics. “Once the infrastructure is built, the economy will move faster, and GST collections will rise. This is how we connect development with governance,” he said.

Reaffirming the government’s commitment to transparency and digital transformation, Sridhar Babu unveiled initiatives such as the ‘Build Now’ portal and Telangana Data Exchange, which will bring speed, accountability, and efficiency to real estate and infrastructure approvals. The government, he added, is adopting GIS-based planning, AI-driven design, and digital audits to ensure sustainable and data-driven urban development.

“The sustainability of construction is now a measurable reality. Our focus is on digital monitoring, green codes, and transparent project delivery,” the Minister said. He urged developers to build with integrity and sustainability, emphasizing that Hyderabad must remain “the most affordable global city.”

Addressing builders and investors, Sridhar Babu said Telangana stands for clarity and credibility. “Invest with confidence. The state ensures transparency, good governance, and a supportive policy framework,” he said. He called for close collaboration between the government, entrepreneurs, and homebuyers to make affordable and sustainable housing a reality.

Concluding his address, the Minister thanked Naredco for providing a platform to engage with industry stakeholders.

“Together, we can set a new national benchmark for transparency, sustainability, and technology-led governance. Let us continue to build not just houses, but homes that define the future of Telangana,” he said. Vijay Sai Meka, President, K Sreedhar Reddy, Secretary General of Naredco Telangana also addressed the meeting.