HCLTech to invest Rs 15,000 crore in AI data centre, global tech hub in Odisha

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HCLTech, a leading Indian IT services company, is set to revolutionise India's AI landscape with a massive Rs 15,000 crore investment in a new AI-optimised data centre and global technology hub in Bhubaneswar, Odisha, aiming to deliver cutting-edge AI-led digital solutions and bolster the nation's sovereign AI capabilities.

HCLTech

Illustration: Dado Ruvic/Reuters

Key Points

  • HCLTech will establish its first AI data centre and a global technology centre in Bhubaneswar, Odisha, with an estimated investment of Rs 15,000 crore.
  • The facility, part of the Odisha Sovereign AI Park, aims to innovate and deliver AI-led digital solutions to global enterprises and strengthen India's sovereign AI ecosystem.
  • The global technology centre is expected to commence operations by 2028 and will employ 5,000 individuals.
  • The project will provide secure, scalable, and inclusive digital infrastructure for government, research institutions, startups, and enterprises, leveraging HCLTech's AI capabilities and Sarvam AI's indigenous foundation models.
  • This initiative follows HCLTech's recent acquisition of a 10.5 per cent stake in Sarvam AI for $150 million, indicating a strategic focus on AI infrastructure.
 

HCLTech, India's third-largest information technology (IT) services company, announced on Friday it would set up a world-class global technology centre and an AI-optimised data centre in Bhubaneswar to innovate and deliver AI-led digital solutions to global enterprises.

This will be the company"s first AI data centre.

Strategic Investment in Odisha's AI Ecosystem

The proposed global technology centre and AI data centre will come up in the upcoming Odisha Sovereign AI Park, being developed in partnership with Sarvam AI and the Odisha government.

The technology centre expected to start its operations by 2028 will house 5,000 employees.

Official sources said that total investment in the project would be around Rs 15,000 crore.

A first of its kind project in India, the facility will provide secure, scalable and inclusive digital infrastructure for government, research institutions, startups and enterprises.

Although HCLTech has not disclosed its investment for the proposed AI data centre, Chief Executive Officer and Managing Director C Vijayakumar said during the recent earnings conference that the company would make strategic investments of up to Rs 3,500 crore for building data centres.

However, its proposed global development centre (GDC), which will be established at a cost of Rs 730 crore, was approved by the State Level Single Window Clearance Authority headed by Odisha Chief Secretary Anu Garg recently.

Strengthening India's Sovereign AI Capabilities

The announcement marked HCLTech"s formal entry into the AI infrastructure business and is expected to strengthen India's sovereign AI ecosystem, by providing high-performance computing infrastructure.

This follows HCLTech's recent acquisition of a 10.5 per cent stake in Sarvam AI for $150 million.

"Apart from HCLTech's investment, Sarvam will raise a substantial amount for the upcoming Sovereign AI hub.

"The Odisha government will also support significantly through subsidy and incentives mandated in its existing AI and other policies," a senior official told Business Standard.

The facility will leverage HCLTech"s full-stack AI capabilities together with Sarvam's indigenous AI foundation models to deliver sector-specific AI applications for both government and private enterprises, while addressing India"s growing need for sovereign AI infrastructure.

The centre will also contribute to the delivery of multi-lingual AI-based services to the last mile.

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