HomeEnterprise ITData CenterTCS unit HyperVault to build 1 GW AI data centre in Hyderabad

TCS unit HyperVault to build 1 GW AI data centre in Hyderabad

HyperVault, the data centre subsidiary of TCS, will build a 1 gigawatt AI data centre campus on 264 acres in Hyderabad, with investments of up to ₹70,000 crore planned for the facility designed for high-density GPU deployments.

Preferred Source of Google

Key Points

  • HyperVault secures 264 acres in Hyderabad for 1 GW AI data centre campus
  • Investment of up to ₹70,000 crore planned by HyperVault and partners
  • Facility designed for high-density GPU deployments with liquid cooling

HyperVault, the data centre subsidiary of (TCS), will build a 1 gigawatt artificial intelligence data centre campus in Hyderabad, with investments of up to ₹70,000 crore planned by the company and its partners for the project’s construction and management.

The company has secured 264 acres of land for the facility, which is designed to support high-density deployments of graphics processing units (GPUs), the specialised chips that power AI model training and inference. A gigawatt represents the electrical power capacity of the campus, roughly equivalent to the output of a large nuclear power plant, making this among the largest announced data centre projects in India.

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TCS CEO & MD K Krithivasan said the project advances the company’s infrastructure-to-intelligence strategy. “HyperVault advances TCS Infrastructure-to-Intelligence strategy by integrating AI-ready infrastructure with its cloud, engineering, enterprise transformation, and AI capabilities,” Krithivasan said. “Hyderabad offers the necessary scale, talent, and ecosystem to serve global customers.”

The campus is purpose-built for what the company calls frontier AI companies and hyperscalers, the latter referring to operators of massive cloud computing infrastructure such as Google, and Amazon Web Services. These organisations require facilities capable of handling the intense power and cooling demands of modern AI workloads.

Phased construction

Development will proceed in phases aligned with customer demand and evolving technology requirements. Upon full build-out, the company projects the campus will rank among India’s most advanced and largest AI infrastructure facilities.

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Deepesh Kiran Nanda, CEO and managing director, HyperVault AI Data Center Limited, said the infrastructure addresses emerging requirements in the AI sector.

“The infrastructure is being built to address the future direction of AI, which includes higher density, liquid cooling, larger power blocks, and faster deployment,” Nanda said. Liquid cooling, where fluid rather than air removes heat from server components, has become essential for the latest generation of AI chips that generate far more heat than traditional processors.

Telangana chief minister A Revanth Reddy described the project as historic for the state. “Access to AI models and compute is rapidly becoming public infrastructure, and having this compute reside in Telangana provides a distinct advantage,” Reddy said. The campus will incorporate green energy sources and water-neutral design principles.

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IT and Industries minister D Sridhar Babu, who led negotiations for the agreement, said the partnership originated from a conversation between Reddy and N Chandrasekaran, chairman of Tata Sons, at the World Economic Forum in Davos earlier this year.

Economic impact

The project is expected to generate several thousand direct and indirect jobs in the region. Beyond immediate employment, the facility is anticipated to catalyse India’s broader AI infrastructure ecosystem across power, cooling, networking, construction, engineering and operations sectors.

By the numbers

Key figures from this story
1 GW
Power capacity of planned AI data centre campus
₹70,000 crore
Total investment planned by HyperVault and partners
264 acres
Land secured in Hyderabad for the facility

India has faced a significant gap in AI-ready data centre capacity compared to markets such as the , Singapore and parts of Europe. Most existing domestic facilities were designed for traditional enterprise computing rather than the power-intensive requirements of AI training, which can consume 10 to 15 times more per rack than conventional workloads.

TCS announced its entry into the data centre segment last year with the formation of HyperVault. Private equity firm TPG is investing $1 billion in the business.

The Hyderabad campus is the company’s first major announced project since that formation, positioning TCS to compete with established data centre operators such as CtrlS, Yotta and the infrastructure arms of Reliance and Adani in the domestic AI infrastructure market.

Your Questions, Answered

How much land has HyperVault secured for the Hyderabad AI data centre?

HyperVault has secured 264 acres of land in Hyderabad for the AI data centre campus, which will have a capacity of up to 1 gigawatt.

What is the total investment planned for the HyperVault data centre?

HyperVault and its partners plan investments of up to ₹70,000 crore for the construction and management of the Hyderabad AI data centre campus.

What makes this data centre different from traditional facilities?

The facility is designed for high-density GPU deployments with liquid cooling, larger power blocks and faster deployment, addressing the intensive power and cooling demands of modern AI training and inference workloads.

Who is investing in HyperVault?

Private equity firm TPG is investing $1 billion in HyperVault, the data centre subsidiary that TCS formed last year to enter the data centre segment.

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