Telangana
,
Mekaguda
,
Rangareddy
Published :
Sep 2025
|
Updated :
Data centre and dispossession: Land, livelihoods, and environmental concerns in Mekaguda, Telangana
Reported by
Kavitha Yarlagadda
Legal Review by
Anmol Gupta
Amrita Chekkutty
Edited by
Anupa Kujur
57
Households affected
273
People affected
2023
Year started
8.9
ha.
Land area affected
57
Households affected
273
People Affected
2023
Year started
8.9
Land area affected
Key Insights
Sector
Industry
Reason/Cause of conflict
Data Centre/AI
Conflict Status
Ongoing
Ended
Legal Status
Region Classification
Rural
Unclassifed
Sector
Industry
Reason/Cause of conflict
Data Centre/AI
Conflict Status
Ongoing
Ended
Legal Status
Region Classification
Rural
Ended
1
Summary

In March 2022, Microsoft purchased a 22-acre land tract in Mekaguda village in Rangareddy district of Telangana as part of its Rs 15,000 crore investment in the Hyderabad Data Centre region over a period of 15 years. The firm also acquired 41-acre in Shadnagar for Rs 164 crore and 52-acre in Chandenvelly for Rs 72 crore.

The Telangana State Industrial Infrastructure Corporation (TSIIC) pooled and transferred the land to the company in accordance with state's industrial strategy. In Mekaguda, the land falls in the Khasra Nos. 859, 862, 880, 881, 882, 883 and 892, covering an area of 21.60 acres. Soon after the acquisition, locals began to object, claiming illegal encroachment and pollution to Tungakunta lake and lack of access to communal cart-ways, which they rely on for farming, grazing, and water access.

Residents reportedly filed complaints and objections with government officials in mid-2022, but the Revenue and Irrigation Departments, as well as TSIIC, upheld the acquisition, deeming the project to be for public use.

In July 2023, a group of 57 local residents filed a petition against Microsoft and 35 other companies and government bodies in Telangana’s High Court. The petitioners contended that Microsoft illegally occupied land beyond its property boundaries and disposed of industrial trash in a neighbouring lake. They also alleged the industrial activities polluted the groundwater in five villages in the vicinity, impacting lives of 20,000 villagers. They further demanded the government to compel Microsoft and other firms to stop the encroachment.

The petition was admitted by the court, and hearings are still proceeding. As on 10 September 2025, the matter is still pending in the Telangana High Court, with no final verdict yet.

The debate has now drawn attention to broader concerns such as land acquisition, community rights, and environmental preservation, emphasising the contradictions between large-scale tech investments and local livelihoods.

According to a conceptual design created by AECOM, Microsoft's infrastructure consulting partner for the project, the Mekaguda data centre is expected to be completed by 2025 and it will employ 180 people at the facility.

2
Fact Sheet

Demand/Contention of the Affected Community

Opposition against environmental degradation

Demand to retain/protect access to common land/resources

Other Demand/Contention of the Affected Community

The petitioners claim that Microsoft has illegally occupied land beyond the boundaries of its property and illegally encroached upon Tungakunta Lake and is using it as a dump yard.

Region Classification

Rural

Type of Land

Common and Private

Non-Forest (Other than Grazing Land)

What was the action taken by the police?

How many people did the police detain or arrest?

What is the current status of the detained/accused persons?

Did the person face any violence while in police custody?

If any arrests took place, were the accused persons produced before a judge within 24 hours of the arrest?

If the accused was not produced before a magistrate within 24 hours, or not produced at all, what were the reasons?

Legislation under which the accused was charged

Was the accused person informed of their right to legal representation? Did the accused person have access to legal aid?

In cases where the accused person approached the court for bail, was bail granted?

Why was bail granted or rejected? If granted, what were the bail conditions and quantum of bail?

Were there any other notable irregularities that took place, or other significant details?

Details of sources (names of accused, names and numbers of any lawyers, names of any police officers contacted)

Status of Project

Project underway despite protests

Original Project Deadline

2025

Whether the Project has been Delayed

No

Significance of Land to Land Owners/Users

Agricultural land, Residential area

Whether the project was stalled due to land conflict

No

Source/Reference

Total investment involved (in Crores):

15000

Type of investment:

Cost of Project

Year of Estimation

2022

Page Number In Investment Document:

Has the Conflict Ended?

No

When did it end?

Why did the conflict end?

4
Additional Information

Government Departments Involved in the Conflict:

Telangana State Government, Revenue and Irrigation Departments

PSUs Involved in the Conflict:

Telangana State Industrial Infrastructure Corporation (TSIIC)

Did LCW Approach Government Authorities for Comments?

No

Name, Designation and Comment of the Government Authorities Approached

Corporate Parties Involved in the Conflict:

Microsoft

Did LCW Approach Corporate Parties for Comments?

No

Communities/Local Organisations in the Conflict:

Mekaguda village residents and farmers

5
Information on the use of criminal law

What was the action taken by the police?

How many people did the police detain or arrest?

What is the current status of the detained/accused persons?

Did the person face any violence while in police custody?

If any arrests took place, were the accused persons produced before a judge within 24 hours of the arrest?

If the accused was not produced before a magistrate within 24 hours, or not produced at all, what were the reasons?

Legislation under which the accused was charged

Was the accused person informed of their right to legal representation? Did the accused person have access to legal aid?

In cases where the accused person approached the court for bail, was bail granted?

Why was bail granted or rejected? If granted, what were the bail conditions and quantum of bail?

Were there any other notable irregularities that took place, or other significant details?

Legal Supporting Documents

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Author
Reported by
Kavitha Yarlagadda
Kavitha Yarlagadda is an independent journalist based in Hyderabad, India. She is a Civil Engineer with a Masters in Environmental Science. She writes on Environment, Science, Health, Social Justice, Gender and Technology. She has her articles published in BBC, The Guardian, British Medical Journal, CS Monitor, Al Jazeera, Reasons to be Cheerful, South China Morning Post, The National, Resurgence & Ecologist and more.
Show more work
Fact sheet

Demand/Contention of the Affected Community

Opposition against environmental degradation

Demand to retain/protect access to common land/resources

If any arrests took place, were the accused persons produced before a judge within 24 hours of the arrest?

Was the accused person informed of their right to legal representation? Did the accused person have access to legal aid?

In cases where the accused person approached the court for bail, was bail granted?

Why was bail granted or rejected? If granted, what were the bail conditions and quantum of bail?

Were there any other notable irregularities that took place, or other significant details?

Status of Project

Project underway despite protests

Original Project Deadline

2025

Whether the Project has been Delayed

No

Significance of Land to Land Owners/Users

Agricultural land, Residential area

Whether the project was stalled due to land conflict

No

Source/Reference

JOIN
THE LCW COMMUNITY
Exclusive monthly policy briefs, stories from the ground, Quarterly Analytics report, Curated Expert talks, merchandise and much more.


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