Search-engine giant Google plans to open its own campus in the city of Hyderabad in the southern Indian state of Telangana, a report said Sunday, adding that the company is also set to soon sign a memorandum of understanding (MoU) with the government of the country's newest state.

Google, which currently operates from rented premises in Hyderabad, is now looking to set up a “permanent and big” campus in the city and details of the plan will soon be announced at a press conference, The Economic Times, an Indian business newspaper, reported, citing a state official.

“We are likely to sign MoU with Google. They are likely to open their campus here in Hyderabad. It will be the third campus they will have after the US and the UK,” the official said, adding that several other companies, including Cisco, Airtel and Vodafone, have also showed interest in increasing their presence in Hyderabad.

“It will take time (to make the city Wi-Fi enabled) because business model is the critical issue. Making Wi-Fi is not a big problem ... but how to monetise it ... is the key issue,” the official said.

Companies like Microsoft, Facebook and other large multinational companies already have sizable operations in Hyderabad.