Microsoft Expands Hyderabad Presence with Massive Office Lease at Phoenix Centaurus.

Microsoft Expands Hyderabad Presence with Massive Office Lease at Phoenix Centaurus

Microsoft has taken a striking leap forward in Hyderabad, India, by signing a new five-year lease for a substantial 264,000 square feet of premium office space at Phoenix Centaurus. This fresh lease, starting July 1, 2025, marks one of the largest office real estate transactions in the city and showcases Hyderabad’s growing appeal as a global technology hub.

The leased area covers the entire third and fourth floors of the building, with Microsoft agreeing to pay a base monthly rent of ₹1.77 crore, translating to ₹67 per square foot. Once additional costs such as common area maintenance and operating expenses are factored in, the total monthly outgoing cost rises to ₹5.4 crore or ₹204 per square foot. The lease also includes an annual rental escalation of 4.8%, along with a security deposit of ₹42.15 crore.

This move represents a major expansion for Microsoft’s already significant footprint in Hyderabad. Since establishing its India Development Centre in 1998, the company has grown Hyderabad into its largest R&D base outside the United States. The existing campus in Gachibowli functions as a nerve center for Microsoft’s engineering innovations in artificial intelligence and cloud technologies. The new space at Phoenix Centaurus will help accommodate additional R&D teams and technology units to support Microsoft’s global operations.

Industry experts attribute Microsoft’s confidence in Hyderabad to the city’s winning combination of skilled talent, robust infrastructure, and cost advantages. This lease agreement exemplifies how major global tech players are not only cementing their presence but also aggressively expanding in premium Grade-A office spaces within Hyderabad. The tech giant’s deal was facilitated by Table Space Technologies, a managed workspace operator that sub-leases the space from Phoenix Tech Zone.

For Hyderabad, this lease deal is another milestone elevating the city’s status as a top destination for global IT and tech companies. With a steady inflow of large-scale corporate leases, Hyderabad continues to assert itself as India’s premier technology and innovation ecosystem, drawing the world’s best firms to invest and expand here.

This significant commercial real estate transaction is a win-win—for Microsoft’s growth ambitions and Hyderabad’s ongoing evolution as a global IT powerhouse.

This blog highlights Microsoft’s strategic growth in Hyderabad marked by their major lease at Phoenix Centaurus, reflecting the broader trend of global tech expansion in India’s emerging metros. It offers a snapshot of the deal’s details and the underlying market dynamics propelling Hyderabad’s rise on the tech world map.