HCLTech Commits $1.48 Billion to AI Data Center in Odisha
The Indian IT giant partners with Sarvam AI to build sovereign infrastructure and a 5,000-seat tech hub in Bhubaneswar by 2028.
HCLTech announced a 142.57 billion rupee ($1.48 billion) investment to establish its first AI data center in Bhubaneswar, Odisha, marking a decisive push into sovereign AI infrastructure. The project, developed in partnership with startup Sarvam AI and supported by the Odisha government, will be housed at the upcoming Odisha Sovereign AI Park.
Full-Stack AI Strategy
The investment signals HCLTech's shift beyond traditional IT services toward integrated AI capabilities. CEO C Vijayakumar described the ambition as delivering "the data centre, the GPUs, the models, the applications" as a unified stack. "The overall value creation is significantly of a very different magnitude when you really look at this as a full stack," he said.
The move follows HCLTech's acquisition of a 10.46% stake in Sarvam AI for $150 million in mid-June 2026, positioning the company to leverage homegrown large language models alongside the new infrastructure.
5,000 Jobs by 2028
Alongside the data center, HCLTech plans to open a Global Technology Center in Bhubaneswar that will employ 5,000 people and begin operations by 2028. The facility will support the AI infrastructure buildout and expand the company's regional footprint in eastern India.
Competitive Pressure
Indian IT firms are racing to capitalize on surging demand for AI and cloud computing infrastructure. In November 2025, Tata Consultancy Services announced a $2 billion investment in AI data centers alongside private equity firm TPG, underscoring the sector's strategic pivot.
Why India, Why Now
By building local infrastructure, HCLTech aims to serve India's massive internet user base while benefiting from lower operating costs. The strategy positions the company to offer end-to-end AI services—from compute infrastructure to deployed applications—without relying on foreign cloud providers.
The Odisha government confirmed financial support for the project, though specific assistance amounts were not disclosed. The partnership reflects state-level competition to attract technology investment as India positions itself as an AI manufacturing and services hub.