HCLTech to invest $1.48 billion in an AI data center in Odisha in partnership with Sarvam AI.
Bhubaneswar: HCLTech will invest ₹14,257 crore ($1.48 billion) to establish its first Artificial Intelligence (AI) data center in Odisha in partnership with AI startup Sarvam AI, marking a major private investment in India’s AI infrastructure.
The project will be developed at the proposed Odisha Sovereign AI Park in Bhubaneswar and is aimed at strengthening India’s sovereign AI capabilities by building advanced computing infrastructure within the country.
The announcement was made during the Odisha government’s investment outreach programme, where HCLTech signed a Memorandum of Understanding (MoU) with the Odisha government and Sarvam AI. Alongside the AI data center, HCLTech also committed to setting up a 5,000-seat Global Technology Centre (GTC) in the state.
What the AI Data Center Will Do
Unlike traditional enterprise data centers, the new facility is designed specifically to support high-performance computing workloads required for artificial intelligence applications, including AI model training and deployment.
The project will help meet the growing demand for computing power as businesses and governments increasingly adopt artificial intelligence. The company has not yet disclosed the technical specifications of the facility.
Partnership with Sarvam AI
Sarvam AI, one of India’s leading AI startups, will serve as HCLTech’s strategic partner for the project.
The startup is developing large language models (LLMs) and AI technologies designed for Indian languages and local use cases. Earlier this year, Sarvam AI was selected under the Government of India’s IndiaAI Mission to develop an indigenous foundation model. The collaboration aims to create AI solutions tailored to India’s linguistic diversity while supporting the country’s sovereign AI ambitions.
Earlier this year, HCLTech acquired a 10.5% stake in Sarvam AI for approximately $150 million, strengthening the partnership between the two companies.
Boosting India’s Sovereign AI Infrastructure
The investment aligns with India’s broader push to build a sovereign AI ecosystem, which focuses on developing AI infrastructure, computing capacity, data storage and AI models while reducing dependence on overseas AI infrastructure and cloud providers.
Countries around the world are increasingly investing in sovereign AI capabilities to improve data security, technological independence and long-term competitiveness in artificial intelligence.
The Odisha project is expected to become an important part of India’s domestic AI infrastructure.
Why Odisha Was Chosen
The Odisha government is developing the proposed Sovereign AI Park to attract investments in AI, cloud computing and digital infrastructure, positioning the state as an emerging technology hub in eastern India.
The project is expected to accelerate Odisha’s digital economy while attracting additional investments in advanced technology sectors.
Global Technology Centre to Create Jobs
Alongside the AI data center, HCLTech will establish a 5,000-seat Global Technology Centre in Bhubaneswar.
The facility will support software engineering, digital transformation and AI-related services for global clients. The company expects the centre to become operational by 2028.
The ₹14,257 crore investment covers the AI data center project, while the Global Technology Centre forms part of HCLTech’s broader expansion plans in the state.
The 5,000-seat Global Technology Centre is expected to create significant employment opportunities, while the AI data center is also likely to support additional jobs during construction and operations.
HCLTech’s Expanding AI Strategy
HCLTech has been rapidly expanding its artificial intelligence business as demand for AI services grows worldwide.
The company aims to offer end-to-end AI capabilities, including infrastructure, AI platforms, enterprise solutions and consulting services. The Odisha investment marks HCLTech’s entry into the AI infrastructure segment, complementing its existing software and digital transformation business.
Chief Executive Officer C Vijayakumar said the company aims to build a full-stack AI business spanning infrastructure, AI models, platforms and applications.
Significance for India’s AI Industry
The investment is expected to expand India’s domestic AI computing capacity and support the development of AI applications and Indian-language models.
The project aligns with India’s broader efforts to expand domestic AI infrastructure and strengthen sovereign AI capabilities while improving access to high-performance computing for Indian enterprises and startups.
The HCLTech-Sarvam AI partnership represents a significant step in India’s efforts to build a secure, self-reliant and globally competitive artificial intelligence ecosystem.
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