HCLTech has made a big move into India’s AI infrastructure story with a planned Rs 14,257 crore AI data centre in Odisha, developed with Sarvam and the Odisha government. The project marks the company’s first AI data centre and comes at a time when investors are watching closely for signs of where the next wave of enterprise-tech growth will come from.
HCLTech’s first AI push:
The new facility will be set up at the upcoming Odisha Sovereign AI Park in Bhubaneswar and is being positioned as a full-stack AI infrastructure project. HCLTech said the centre will use its own AI capabilities along with Sarvam’s foundation models to support sector-specific AI applications for government and private enterprises.
The company has said the planned capital outlay is Rs 14,257 crore, including financial assistance from the Odisha government. The project is being pitched as a first-of-its-kind investment in India’s sovereign AI ecosystem, with a focus on secure, scalable and inclusive digital infrastructure.
Odisha becomes A New Tech Hub:
The announcement also includes a global delivery centre in Odisha, which is expected to create around 5,000 jobs. That makes the project more than just a data-centre play; it is also a meaningful expansion of HCLTech’s delivery footprint in eastern India.
A memorandum of understanding for the project was signed between HCLTech, the Odisha government and Sarvam in the presence of Chief Minister Mohan Charan Majhi, IT minister Mukesh Mahaling, HCLTech chairperson Roshni Nadar Malhotra, CEO C Vijayakumar and Sarvam co-founder Pratyush Kumar. The company’s press note also said the project fits into India’s push for sovereign AI and local developer ecosystems.
Stock Reacts To The Announcement:
The market responded positively, with HCLTech shares rising after the announcement. Reports said the stock gained about 2% even as the broader market was weak, which suggests investors viewed the project as a strategic long-term bet rather than just another capital-heavy expansion.
HCLTech’s move also builds on its earlier AI push. The company had already indicated plans to expand into full-stack AI infrastructure, and reports noted that it had invested $150 million in Sarvam before this bigger announcement.
“HCLTech announces AI Data Center in Bhubaneswar in partnership with Sarvam and Government of Odisha.”~HCLTech
What The Project Means:
The Odisha centre gives HCLTech a direct role in India’s sovereign AI buildout, a space where control over data, computing and model deployment is becoming a major business advantage. By pairing infrastructure with an Indian frontier-model company, HCLTech is trying to create a platform that can serve government, startups, enterprises and research institutions from one base.
It also signals that the company wants to move beyond traditional IT services and deeper into AI infrastructure ownership. That matters because AI demand is not just about software models anymore; it is also about GPU-intensive computing, secure data handling and the ability to deploy AI close to where the demand is coming from.
“HCLTech to set up Rs 14,257 crore AI data centre in Odisha with Sarvam.”~Economic Times
“HCLTech to invest $1.4 billion in Odisha for its first AI data centre.”~Business Standard
“Why are HCLTech shares rising even as the stock market trades in the red today?”~Today Business
