HCLTech has announced plans to establish its first AI Data Center in Bhubaneswar as part of a three-way partnership with AI startup Sarvam and the Government of Odisha, with a planned capital outlay of USD 1.71 billion, including financial assistance from the state government. The announcement, made on July 24, 2026, marks a significant step in the global technology company's bid to enter the full-stack AI market.

A Three-Way Partnership for Sovereign AI

The AI Data Center will be located within the upcoming Odisha Sovereign AI Park. A Memorandum of Understanding formalizing the arrangement was signed between HCLTech, the Government of Odisha, and Sarvam in the presence of Odisha Chief Minister Mohan Charan Majhi, Dr Mukesh Mahaling, Minister of Electronics and IT for the Government of Odisha, Roshni Nadar Malhotra, Chairperson of HCLTech, C Vijayakumar, CEO and Managing Director of HCLTech, and Pratyush Kumar, Co-Founder of Sarvam.

The partnership brings together HCLTech's full-stack AI capabilities and Sarvam's foundation models to offer sector-specific AI applications to private and public sector enterprises, while also addressing what the company described as the government's sovereignty needs.

HCLTech said the initiative would contribute to the delivery of multilingual AI-based services to the last mile, aligning with what the press release described as Prime Minister Narendra Modi's call for AI to benefit everyone.

Context: HCLTech's Full-Stack AI Ambitions

The Bhubaneswar announcement is directly tied to a broader strategic pivot that HCLTech telegraphed earlier in July. On July 13, 2026, the company announced its entry into the full-stack AI market alongside a proposed investment of up to USD 420 million to establish AI data centers. That same day, the company reported record deal bookings of USD 2.4 billion for its first quarter, with advanced AI revenue growing 62.1 percent to USD 171 million.

The USD 1.71 billion figure attached to the Odisha project is notably larger than the initial USD 420 million figure disclosed on July 13, with the Odisha investment representing a more expansive commitment that includes financial assistance from the state government. HCLTech noted that the proposed investment would be made through a new subsidiary and step-down subsidiaries to be established for the business.

HCLTech reported consolidated revenues of USD 14.8 billion for the twelve months ending June 2026 and employs more than 223,000 people across 60 countries.

What the Partners Are Saying

Roshni Nadar Malhotra, Chairperson of HCLTech, framed the investment within the context of India's broader national technology agenda. "HCLTech has been a flagbearer of India's technology industry. In line with the Digital India and Atmanirbhar Bharat vision of Hon'ble Prime Minister Sh. 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. We are pleased to start this endeavor in partnership with the Odisha government and Sarvam," she said.

CEO C Vijayakumar described the project as an important milestone in the company's full-stack AI strategy. "This is an important milestone in our full-stack AI play and will enable us to serve the great demand for sovereign AI solutions and unlock the scale of our strategic partnership with Sarvam. Odisha offers a progressive policy environment backed by excellent infrastructure, and we look forward to working with them in collaboration with Sarvam," he said.

Pratyush Kumar, Co-Founder of Sarvam, pointed to the combination of computing infrastructure and AI model development as central to the project's purpose.

"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," he said.

India's Data Center Market as the Backdrop

HCLTech characterized India as one of the fastest-growing technology markets globally and a key growth market for the company. The company pointed to strong demand from the country's digital economy, data localization requirements and the need for critical infrastructure to support GPU deployments for AI training and inference workloads as drivers behind the rapid expansion of India's data center ecosystem.

The Odisha facility is not HCLTech's only recent infrastructure move in the region. A separate press release dated the same day, July 24, 2026, announced that HCLTech would also be establishing a Global Technology Center in Bhubaneswar, though the details of that facility were contained in a distinct announcement. Earlier in July, the company also announced the expansion of its India footprint with a technology hub at GIFT City.

Odisha's Role as Host

The choice of Odisha as the location for HCLTech's first AI Data Center reflects a deliberate partnership with the state government, which is contributing financial assistance as part of the overall capital outlay.

Chief Minister Mohan Charan Majhi and Electronics and IT Minister Dr Mukesh Mahaling were both present at the MoU signing, underscoring the state's active role in facilitating the investment.

The Odisha Sovereign AI Park, where the data center will be situated, is described as an upcoming facility, though no further timeline details were provided in the announcement.

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