TCS Subsidiary HyperVault to Invest $7.4 billion Building 1 GW AI Data Center Campus in Telangana, India

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TCS Subsidiary HyperVault to Invest $7.4 billion Building 1 GW AI Data Center Campus in Telangana, India

Updated on Sep 05, 2026, 08:47 PM IST
Written & Edited by Stuti Sharma

HyperVault, a subsidiary of Tata Consultancy Services, has announced plans to develop a one gigawatt AI data center campus in Hyderabad, backed by an investment of USD 7.4 billion in what is being described as one of India's largest planned investments in AI infrastructure.

 

A Campus Built for Frontier AI Demand

The company has secured 264 acres of land in Hyderabad's Future City to serve as the site for the large-scale facility. The campus is designed to cater to frontier AI companies and hyperscalers, supporting high-density GPU deployments for AI training, inference, and advanced computing workloads.

 

HyperVault said development will be undertaken in phases based on customer demand and technology requirements.

At full build-out, the campus is expected to be among India's largest and most advanced AI infrastructure campuses. The facility will incorporate liquid-cooled compute infrastructure along with green energy and water-neutral design principles.

 

 

 

Jobs and Economic Impact

The project is expected to generate several thousand direct and indirect jobs and drive demand across a broad range of sectors, including power, cooling, networking, construction, engineering, and data center operations.

 

Telangana IT and Industries Minister D. Sridhar Babu stated specifically that the data center will create direct and indirect employment of up to 7,000 people.

The campus will be developed as part of Telangana's broader effort to position the state as a strategic hub for AI and advanced digital infrastructure.

 

 

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TCS Leadership Frames Project Around "Infrastructure-to-Intelligence" Strategy

TCS CEO and Managing Director K. Krithivasan said the project advances the company's stated "Infrastructure-to-Intelligence" strategy, which he described as combining AI-ready infrastructure with TCS's capabilities in cloud, engineering, enterprise transformation, and artificial intelligence.

Krithivasan characterized the significance of the technology shift in broad terms, saying that AI is a civilizational shift that will change everything done today. He added that Hyderabad offers the scale, talent, and ecosystem required to serve global customers.

Speaking to the media, Krithivasan indicated that the data center will be operational within 18 to 24 months from breaking ground.

 

Telangana Government Signals Full Support

Telangana Chief Minister Revanth Reddy, responding to Krithivasan's timeline, asked TCS to inaugurate the data center on June 2, 2028, and assured the company of all required sanctions to speed up the process. Reddy called the project historic for the state.

Hyderabad Continues Push as India's AI Infrastructure Hub

The announcement adds significant weight to Hyderabad's growing profile as a destination for large-scale technology infrastructure investment in India.

 

The Future City location, where HyperVault has secured its 264-acre plot, forms part of Telangana's planned development zones aimed at attracting global technology players.

The scale of the HyperVault campus, anchored by its one gigawatt capacity target, places the project at the forefront of India's rapidly expanding data center sector, which is seeing increasing interest from both domestic conglomerates and international hyperscalers seeking to establish AI compute capacity in the country.

 

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