Odisha's Data Centre Push Takes Centre Stage With 1.43 Lakh Crore Investment Pipeline

Odisha has approved four projects in the data-centre, IT and IT-enabled services segment involving a combined proposed investment of about ₹1.43 lakh crore, making digital infrastructure the largest investment category among 27 projects cleared by the state’s High Level Clearance Authority (HLCA).

The approvals, made at an HLCA meeting chaired by Chief Minister Mohan Charan Majhi on September 23, cover projects with a combined proposed investment of ₹2,47,115.70 crore across 15 districts. The projects have an employment potential of 50,162, according to state government information reported by multiple outlets.

The data-centre component stands out because of the size of the individual proposals. High Density Datacentre Ltd has proposed an integrated data centre in Khurda with an investment of ₹1,04,550 crore. HCL Technologies has proposed an AI-optimised data centre in Khurda with an investment of ₹14,257 crore. Other approved projects include a data centre and global capability centre by Sentraforge AI Ltd in Puri, as well as a data-centre project by RKD Construction Private Ltd in Cuttack.

The scale is significant in the context of India's broader AI infrastructure build-out. Moneycontrol reported on September 23 that India's installed data-centre capacity had grown from 375 MW in 2020 to about 1,575 MW, while government projections put electricity demand from data centres at 17 GW by 2031-32. That growth is increasing demand not just for computing facilities but also for power, cooling, water and supporting physical infrastructure.

That makes Odisha's latest approvals more than a technology-sector story. Data centres are large physical developments requiring land, electrical infrastructure, cooling systems, connectivity and reliable power. The state's simultaneous approvals for power and renewable-energy projects — worth a combined ₹54,287.70 crore — add another layer to the infrastructure picture.

Odisha has also been positioning itself as a destination for semiconductor and technology investment. The state government said earlier in September that it planned to develop an 870-acre Odisha Silicon Valley at Naraj near Cuttack, bringing semiconductor, electronics and IT projects into an integrated technology hub.

Still, the latest numbers should not be read as money already spent or facilities already under construction. The approvals are an initial regulatory step. Actual investment and construction will depend on factors including land, further clearances, financing and execution, according to reporting on the HLCA decisions.

For Odisha, the immediate signal is clear: data centres and AI infrastructure have moved from being a niche technology opportunity to one of the biggest proposed investment engines in the state's current industrial pipeline. The next test will be how quickly these approved projects translate into physical campuses, power capacity and operating infrastructure.

Sources:

https://www.moneycontrol.com/news/india/odisha-clears-mega-data-centre-ai-and-semiconductor-projects-worth-rs-1-45-lakh-crore-14037271.html

https://www.financialexpress.com/business/industry/over-rs-2-45-lakh-crore-50000-jobs-how-odisha-betting-big-on-ai-data-centres-clean-energy-steel-semiconductors/4346092/

https://www.newindianexpress.com/amp/story/states/odisha/2026/Sep/24/odisha-clears-rs-247l-crore-projects-as-data-centres-ai-investors-make-a-rush

https://timesofindia.indiatimes.com/city/bhubaneswar/odisha-clears-2-47l-cr-projects-data-centres-ai-lead-investment-surge/articleshow/134443781.cms

https://www.moneycontrol.com/news/india/india-s-ai-boom-has-a-hidden-cost-the-power-and-water-crunch-behind-data-centres-14036285.html