TCS subsidiary HyperVault plans 70,000 crore AI data centre campus in Hyderabad

Tata Consultancy Services' subsidiary HyperVault plans to invest up to ₹70,000 crore in a 1 GW artificial intelligence data centre campus in Hyderabad, marking one of the largest proposed AI infrastructure investments in India.

The campus is planned on 264 acres in Bharat Future City and is expected to be developed in phases, with the pace of construction linked to customer demand and technology requirements, according to reports by Moneycontrol and the Financial Express.

The facility is designed to support frontier AI companies, hyperscalers and other enterprises running compute-intensive workloads. That means infrastructure capable of handling high-density graphics processing units, or GPUs, used for AI training and inference.

For Hyderabad, however, the significance of the announcement extends beyond the technology sector.

A project of this scale would require substantial specialised construction, power infrastructure and connectivity. Data centres also place significant demands on cooling systems, making energy and water management central considerations in their design.

HyperVault has said its AI-ready data centre infrastructure is being designed around technologies including direct-to-chip liquid cooling, high rack density and resilient power and fibre connectivity. The company has also outlined an ambition to use increasingly green sources of energy for its facilities.

The Hyderabad campus is expected to incorporate green energy and water-neutral design principles, according to reports citing the project announcement. It is also estimated to generate around 7,000 direct and indirect jobs.

The investment comes as India races to build infrastructure for the growing computing demands of artificial intelligence. TCS had previously outlined plans for HyperVault to develop AI-ready data centre capacity exceeding 1 GW across India, supported by investment from TCS, strategic partner TPG and debt financing.

The Telangana government has strongly backed the Hyderabad project. Chief Minister A. Revanth Reddy has described the proposed investment as significant for the state's technology ambitions and has urged HyperVault to launch the facility by June 2028, according to Moneycontrol.

The scale of the project could also sharpen attention on the infrastructure challenges that accompany India's data centre boom.

Power availability, transmission capacity and water use are becoming increasingly important questions as AI workloads push data centres towards much higher computing densities. A recent analysis of India's data centre expansion also flagged grid capacity and water stress as issues that developers and policymakers will need to address as new facilities come online.

For the construction and real estate sectors, the proposed Hyderabad campus is another sign that data centres are emerging as a major new category of infrastructure development. Unlike conventional commercial buildings, AI data centres require highly specialised engineering, cooling and electrical systems.

Whether the full 1 GW campus is ultimately built will depend on how quickly demand materialises and how the project progresses through its planned phases. But with a potential investment of ₹70,000 crore, HyperVault's proposal has already put Hyderabad at the centre of India's rapidly expanding race to build the physical infrastructure behind artificial intelligence.