HCLTech partners Sarvam, Odisha government to build AI data center with ₹14,257 crore investment

Homegrown IT services provider HCLTech has partnered with Sarvam and the government of Odisha to set up its first AI data center in the state with an investment of ₹14,257 crore.

HCLTech said in a joint statement Friday that the planned investment amount also includes financial assistance from the Odisha government, adding that it will boost India’s sovereign AI strategy and local developer ecosystem.

With this, the Noida-headquartered company joins the likes of multinational hyperscalers, including Amazon, Google, and Microsoft, and homegrown conglomerates Reliance Industries and the Adani Group, that are making significant investments in establishing mega computing facilities to support indigenous AI consumption.

HCLTech’s homegrown rival, Tata Consultancy Services (TCS), said last year in October that it would foray into the data center market with an aim to build up to 1GW of capacity, entailing over $6.5 billion in investments.

“In line with the Digital India and Atmanirbhar Bharat vision of Hon’ble Prime Minister Shri 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,” said Roshni Nadar Malhotra, chairperson, HCLTech.

HCLTech, on July 13, announced its foray into the full-stack AI market to address the complete spectrum of full-stack business opportunities arising from growing demand for AI-led services and solutions across the private and government sectors.

This will be powered by a strategic investment of up to ₹3,500 crore to establish AI data centers, with the potential to scale to 50MW of capacity, it had said.

“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,” added C Vijayakumar, CEO & MD, HCLTech.

Last month, HCLTech acquired a 10.5% stake in Sarvam AI for $150 million.

“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,” said Pratyush Kumar, co-founder, Sarvam.

Technology center to create 5k local jobs

Separately, HCLTech has signed a memorandum of understanding (MoU) with the government of Odisha to establish a Global Technology Center in Bhubaneswar, which it said will create 5,000 jobs and commence operations by 2028.

The Technology Center will complement HCLTech’s AI data center in the upcoming Odisha Sovereign AI Park.

“Odisha offers a great mix of quality infrastructure and vibrant talent pool, and we look forward to developing Bhubaneswar as one of our key global innovation and delivery hubs,” said Rahul Singh, COO (corporate functions), HCLTech.

Vishal Kumar Dev, additional chief secretary, government of Odisha, said, “We welcome HCLTech’s decision to establish their footprint in Odisha. Their presence will further embellish Bhubaneshwar’s status as one of India’s most promising technology hubs.”

In India, HCLTech employs over 1.7 lakh people across its technology campuses and centers in Noida, Bengaluru, Chennai, Hyderabad, Pune, Lucknow, Nagpur, Madurai, Vijayawada, and GIFT City.