HCLTech Announces $1.5 Billion AI Data Centre Investment in Odisha
IT major HCLTech will invest $1.5 billion to establish its first AI data centre in Odisha, India. The company signed an MoU with Sarvam AI and the state government for the project.
IT services firm HCLTech has announced a $1.5 billion investment to build its first artificial intelligence (AI) data centre in Bhubaneshwar, Odisha, India. The company signed a Memorandum of Understanding (MoU) with AI firm Sarvam AI and the Odisha government for the project, which is expected to be situated within the Odisha Sovereign AI Park.
The facility aims to combine HCLTech's infrastructure and enterprise capabilities with Sarvam AI's models to develop sector-specific AI applications for enterprise and government clients. The project is also intended to support multilingual AI services and foster the growth of the local developer ecosystem.
This investment marks a significant step in HCLTech's strategy to enter the full-stack AI market. The company previously invested in Sarvam AI, acquiring a 10.46% stake. HCLTech plans further investments of up to ₹3,500 crore in AI data centres, targeting a capacity of 50MW.
The move by HCLTech comes as larger Indian conglomerates like Reliance Industries and the Adani Group also announce substantial investments in AI and data centre infrastructure. The burgeoning Indian data centre market is attracting significant global interest, with companies like Google and Microsoft also planning expansions, despite facing challenges related to power consumption and sustainability.