TCS' HyperVault makes ₹70,000 crore AI infrastructure play with 1 GW Hyderabad campus

The subsidiary has secured 264 acres in Hyderabad for a phased AI data centre project designed for frontier AI companies and hyperscalers.

Tata Consultancy Services (TCS) is making a major push into the AI infrastructure market through its subsidiary HyperVault, which has secured 264 acres of land in Hyderabad to develop an AI data centre campus with up to 1 GW capacity.

The proposed campus is designed specifically for frontier AI companies and hyperscalers, supporting high-density GPU deployments for AI training, inference and advanced computing workloads.

HyperVault said the development will be executed in phases, aligned with customer demand and evolving technology requirements.

At full build-out, the facility is expected to rank among the largest and most advanced AI infrastructure campuses in India. HyperVault and its partners plan to invest up to ₹70,000 crore in building and operating the project.

The announcement signals a significant expansion of TCS' presence in the AI value chain, extending beyond AI services and enterprise transformation into the underlying compute infrastructure required to support large-scale AI deployments.

TCS CEO and managing director K Krithivasan said the project aligns with the company's broader infrastructure strategy.

"HyperVault advances TCS' Infrastructure-to-Intelligence strategy by bringing together AI-ready infrastructure with our cloud, engineering, enterprise transformation and AI capabilities," Krithivasan said.

He added that Hyderabad's scale, talent base and ecosystem make it an attractive location for serving global customers.

Unlike traditional enterprise data centres, the Hyderabad facility is being designed around the requirements of AI-native computing environments.

HyperVault said the campus will support higher-density deployments, liquid-cooled infrastructure, larger power blocks and faster deployment cycles, capabilities increasingly required by organisations running large-scale AI workloads.

HyperVault AI Data Center Limited, CEO and managing director, Deepesh Kiran Nanda, said AI infrastructure requirements are changing rapidly.

"We are building infrastructure for where AI is going: higher density, liquid cooling, larger power blocks and faster deployment," Nanda said.

The company plans to incorporate green energy and water-neutral design principles into the campus.

The project comes amid growing demand for AI-ready infrastructure globally as enterprises, AI model developers and hyperscalers seek larger compute environments to support training and inference workloads. India has seen a series of large-scale AI infrastructure announcements over the past year, with operators, cloud providers and conglomerates expanding investments in data centre capacity.

Hyderabad strengthens its AI infrastructure credentials

The facility is also expected to reinforce Hyderabad's position as one of India's emerging AI and data centre hubs.

Telangana Chief Minister A. Revanth Reddy described the project as a milestone for both the state and the country, highlighting the growing importance of AI compute infrastructure.

"This establishes that Hyderabad is now at the forefront of the global AI revolution with a strong focus on infrastructure. This decade is one of Artificial Intelligence. Access to AI models and compute is fast-becoming public infrastructure and having this compute reside in Telangana gives us an advantage," he said.

According to the company, the project is expected to create several thousand direct and indirect jobs and drive broader ecosystem development across power, cooling, networking, engineering, construction and operations.

Infrastructure is becoming a strategic growth area alongside cloud platforms and AI services. As demand for AI compute accelerates, the ability to provide large-scale, AI-optimised infrastructure is emerging as a competitive differentiator for technology providers, hyperscalers and enterprise service companies alike.