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HCLTech to invest $1.48 billion in AI data center, open 5,000-seat tech hub
HCLTech will invest $1.48 billion to set up its first AI data centre in Odisha with Sarvam AI, as Indian IT firms expand into AI infrastructure. The Bhubaneswar project will offer full-stack AI solutions, while HCLTech will also open a technology centre employing 5,000 people by 2028. India's HCLTech said on Friday it would invest 142.57 billion rupees ($1.48 billion) to set up its first AI data center in the eastern state of Odisha in partnership with homegrown startup Sarvam AI. India's IT services firms are entering the data center business to capitalise on demand from AI and cloud computing â while â diversifying beyond their traditional outsourcing operations. HCLTech's investment will include financial support from the Odisha government, the company said. The project, based in the state capital of Bhubaneswar, will utilise HCLTech's full-stack AI capabilities and Sarvam's foundation models to offer sector-specific AI applications to both government-owned and private companies. Last month, HCLTech acquired a 10.5% stake in Sarvam AI â for $150 million. Additionally, India's third-largest IT firm said it is also opening a technology center in Bhubaneswar, which will house 5,000 employees â and start operations by 2028. HCLTech CEO C Vijayakumar in a post-earnings press conference last week said that the company wants to deliver full-stack AI services, with data centers being a part of the value chain. "...it's the data centre, it's the GPUs, it's the models, it's the applications that we will deliver on top of it. The overall value creation is significantly of a very different magnitude when you really look at this as a full stack, and that's really what we want to play," â he said. In November, larger peer Tata Consultancy Services' announced plans to invest $2 billion to develop AI data centers in partnership with private equity firm TPG. The AI boom has spurred a rush among companies to pour money into data centers, with India seen as a key market due to its large internet user base and lower power and operating costs. ($1 = 96.5425 Indian rupees)
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HCLTech to set up Rs 14,257 crore AI data centre in Odisha with Sarvam
HCLTech will invest Rs 14,257 croreto set up its first AI data centre at the upcoming Odisha Sovereign AI Park in partnership with AI startup Sarvam and the Odisha government, marking a major push into India's sovereign AI infrastructure and full-stack AI ecosystem. HCLTech on Friday said it will set up its first artificial intelligence (AI) data centre at the upcoming Odisha Sovereign AI Park in partnership with AI startup Sarvam and the Odisha government, with a planned capital outlay of Rs 14,257 crore, including financial assistance from the state government. The project marks HCLTech's entry into India's full-stack AI infrastructure space following its announcement earlier this month of plans to expand into the segment. The AI data centre will be developed under a tripartite partnership between HCLTech, Sarvam and the Government of Odisha, with the investment aimed at strengthening India's sovereign AI capabilities and accelerating the country's data ecosystem. According to the company, the facility will combine HCLTech's full-stack AI capabilities with Sarvam's foundation models to develop sector-specific AI applications for public and private sector enterprises while addressing the government's data sovereignty requirements. The platform will also support multilingual AI-based services to expand digital access in line with the Centre's vision of making AI accessible to all. A memorandum of understanding (MoU) for the project was signed between HCLTech, the Odisha government and Sarvam in the presence of Odisha Chief Minister Mohan Charan Majhi, Electronics and IT Minister Mukesh Mahaling, HCLTech Chairperson Roshni Nadar Malhotra, HCLTech CEO and Managing Director C Vijayakumar, and Sarvam Co-founder Pratyush Kumar. "HCLTech has been a flagbearer of India's technology industry. In line with the Digital India and Atmanirbhar Bharat vision of Hon'ble Prime Minister Sh. Narendra Modi, we strive to be an enabler of India's sovereign AI ecosystem with differentiated offerings across the value chain through focused investments and partnerships. We are pleased to start this endeavor in partnership with Odisha government and Sarvam," Roshni Nadar Malhotra, Chairperson, HCLTech, said. HCLTech said India is among the world's fastest-growing technology markets and that the country's data centre ecosystem is expanding rapidly, driven by the growth of the digital economy, data localisation requirements and increasing demand for GPU infrastructure to support AI training and inference workloads.
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HCLTech, Sarvam AI, and Odisha Join Forces to Build New AI Data Center
The investment will accelerate India's sovereign AI and data ecosystem Further to the announcement dated July 13, 2026, relating to its proposed entry into the full-stack AI market, HCLTech today said that it plans to set-up its first AI Data Center in the upcoming Odisha Sovereign AI Park. The AI Data Center will be established in partnership with Sarvam and the Government of Odisha. The planned capital outlay for the project will be Rs 14,257 crores, including financial assistance from the Government of Odisha. This investment will boost India's sovereign AI play and local developer ecosystem by leveraging HCLTech's full-stack AI capabilities and Sarvam's foundation models to offer sector-specific AI applications to private and public sector enterprises and address the government's sovereignty needs. It will also contribute to delivery of multi-lingual AI based services to the last mile, in line with Hon'ble Prime Minister Sh. Narendra Modi's clarion call of AI for the benefit of everyone. A Memorandum of Understanding to this effect was signed between HCLTech, Government of Odisha and Sarvam in the presence of the Hon'ble Chief Minister of Odisha, Sh. Mohan Charan Majhi; Dr Mukesh Mahaling, Hon'ble Minister of Electronics and IT, Government of Odisha; Roshni Nadar Malhotra, Chairperson, HCLTech; C Vijayakumar, CEO & MD, HCLTech and Pratyush Kumar, Co-Founder of Sarvam. Roshni Nadar Malhotra, Chairperson, HCLTech commented, "HCLTech has been a flagbearer of India's technology industry. In line with the Digital India and Atmanirbhar Bharat vision of Hon'ble Prime Minister Sh. Narendra Modi, we strive to be an enabler of India's sovereign AI ecosystem with differentiated offerings across the value chain through focused investments and partnerships. We are pleased to start this endeavor in partnership with Odisha government and Sarvam." "This is an important milestone in our full-stack AI play and will enable us to serve the large demand for sovereign AI solutions and unlock the scale of our strategic partnership with Sarvam. Odisha offers a progressive policy environment backed by excellent infrastructure and we look forward to working with them in collaboration with Sarvam, added C Vijayakumar, CEO & Managing Director, HCLTech. According to Pratyush Kumar, Co-Founder, Sarvam, "The Odisha Sovereign AI Park will connect high-performance compute with Indian models and real-world applications. Together with HCLTech, we are excited to bring Sarvam's full-stack AI capabilities to enterprises and public systems at scale." India is among the fastest growing technology markets globally and a growth market for HCLTech. The country's data center ecosystem is on a rapid growth trajectory, driven by strong demand from a vibrant digital economy, data localization and critical infrastructure needs to support GPU deployments for AI training and inference workloads.
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India's HCLTech to invest $1.48 billion in AI data center, open 5,000-seat tech hub
July 24 (Reuters) - India's HCLTech said on Friday it would invest 142.57 billion rupees ($1.48 billion) to set up its first AI data center in the eastern state of Odisha in partnership with homegrown startup Sarvam AI. India's IT services firms are entering the data center business to capitalise on demand from AI and cloud computing while diversifying beyond their traditional outsourcing operations. HCLTech's investment will include financial support from the Odisha government, the company said. The project, based in the state capital of Bhubaneswar, will utilise HCLTech's full-stack AI capabilities and Sarvam's foundation models to offer sector-specific AI applications to both government-owned and private companies. Last month, HCLTech acquired a 10.5% stake in Sarvam AI for $150 million. Additionally, India's third-largest IT firm said it is also opening a technology center in Bhubaneswar, which will house 5,000 employees and start operations by 2028. HCLTech CEO C Vijayakumar in a post-earnings press conference last week said that the company wants to deliver full-stack AI services, with data centers being a part of the value chain. "...it's the data centre, it's the GPUs, it's the models, it's the applications that we will deliver on top of it. The overall value creation is significantly of a very different magnitude when you really look at this as a full stack, and that's really what we want to play," he said. In November, larger peer Tata Consultancy Services' announced plans to invest $2 billion to develop AI data centers in partnership with private equity firm TPG. The AI boom has spurred a rush among companies to pour money into data centers, with India seen as a key market due to its large internet user base and lower power and operating costs. ($1 = 96.5425 Indian rupees) (Reporting by Abhirami G and Haripriya Suresh in Bengaluru; Editing by Sonia Cheema)
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HCL Tech Plans $1.47 Billion AI Data Center in Odisha
HCL Technologies plans to set up a $1.47 billion artificial-intelligence data center in the eastern Indian state of Odisha, in partnership with Indian AI company Sarvam and the state government. The Indian information-technology services provider said Friday that the planned capital outlay for the project is 142.57 billion rupees, equivalent to $1.47 billion, including financial assistance from the Odisha government. By leveraging HCL's AI capabilities and Sarvam's foundation models, the project will offer sector-specific AI applications to private and public sector enterprises and address the government's sovereignty needs, HCL said.
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India's HCLTech to set up $1.48 billion AI data center along with domestic startup
July 24 (Reuters) - India's HCLTech said on Friday it would invest 142.57 billion rupees ($1.48 billion) to set up its first AI data centre in the eastern state of Odisha in partnership with homegrown startup Sarvam AI. The investment will include financial support from the Odisha government, the company said. Last week, India's third-largest IT services exporter said it would foray into the data center business with plans to invest 35 billion rupees. The AI boom has spurred a rush among companies to pour money into data centers, with India seen as a key market due to its large internet user base and lower power and operating costs. The new project will utilise HCLTech's full-stack AI capabilities and Sarvam's foundation models to offer sector-specific AI applications to both government-owned and private companies, the firm said. Larger rival TCS said last November that it would invest $2 billion to develop AI data centers in partnership with private equity firm TPG. ($1 = 96.5425 Indian rupees) (Reporting by Abhirami G in Bengaluru; Editing by Sonia Cheema)
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HCLTech announced a $1.48 billion investment to build its first AI data center at the Odisha Sovereign AI Park in partnership with Sarvam AI and the Odisha government. The facility will combine full-stack AI capabilities with foundation models to deliver sector-specific AI applications. Additionally, HCLTech will open a 5,000-employee technology center in Bhubaneswar by 2028, marking a significant expansion into India's AI infrastructure space.
HCLTech has announced plans to invest 142.57 billion rupees ($1.48 billion) to establish its first AI data center at the upcoming Odisha Sovereign AI Park in partnership with Sarvam AI and the Odisha government
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. The capital outlay includes financial assistance from the Odisha government, representing a major shift for India's third-largest IT services firm as it moves beyond traditional outsourcing operations into AI infrastructure2
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Source: ET
This investment follows HCLTech's acquisition of a 10.5% stake in Sarvam AI for $150 million last month, signaling a deepening partnership between the two companies
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. A Memorandum of Understanding was signed in the presence of Odisha Chief Minister Mohan Charan Majhi, Electronics and IT Minister Mukesh Mahaling, HCLTech Chairperson Roshni Nadar Malhotra, CEO C Vijayakumar, and Sarvam Co-founder Pratyush Kumar3
.The Bhubaneswar-based facility will leverage HCLTech's full-stack AI capabilities and Sarvam's foundation models to deliver sector-specific AI applications to both government-owned and private companies. HCLTech CEO C Vijayakumar explained the company's vision during a post-earnings press conference: "it's the data centre, it's the GPUs, it's the models, it's the applications that we will deliver on top of it. The overall value creation is significantly of a very different magnitude when you really look at this as a full stack, and that's really what we want to play".

Source: CXOToday
The project aims to strengthen India's sovereign AI ecosystem by addressing data sovereignty requirements while supporting multilingual AI services to expand digital access across the country
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. Roshni Nadar Malhotra emphasized this alignment with national priorities: "In line with the Digital India and Atmanirbhar Bharat vision of Hon'ble Prime Minister Sh. Narendra Modi, we strive to be an enabler of India's sovereign AI ecosystem with differentiated offerings across the value chain through focused investments and partnerships"3
.Alongside the AI data center, HCLTech will open a 5,000-seat tech hub in Bhubaneswar, with operations expected to begin by 2028
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. This dual investment underscores the company's commitment to building comprehensive India's AI infrastructure in Odisha, a state offering what executives describe as a progressive policy environment backed by excellent infrastructure3
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Source: ET
Pratyush Kumar, Co-Founder of Sarvam, noted that "The Odisha Sovereign AI Park will connect high-performance compute with Indian models and real-world applications. Together with HCLTech, we are excited to bring Sarvam's full-stack AI capabilities to enterprises and public systems at scale"
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.Related Stories
India's IT services firms are increasingly entering the data center business to capitalize on demand from AI and cloud computing while diversifying their revenue streams
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. The country's data center ecosystem is experiencing rapid growth, driven by the expanding digital economy, data localization requirements, and critical infrastructure needs to support GPU deployments for AI training and inference workloads2
.HCLTech's move follows a similar announcement by larger peer Tata Consultancy Services in November, which revealed plans to invest $2 billion to develop AI data centers in partnership with private equity firm TPG
1
. The AI boom has triggered a rush among companies to pour money into data centers, with India positioned as a key market due to its large internet user base and lower power and operating costs4
.This partnership between HCLTech, Sarvam AI, and the Odisha government represents a strategic bet on India's growing role in the global AI landscape, combining private sector expertise with government support to build sovereign AI capabilities that can serve both domestic and international markets.
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13 Jul 2026â¢Technology

06 Feb 2026â¢Business and Economy

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