Tata Consultancy Services’ (TCS) data centre subsidiary HyperVault has secured 264 acres in Hyderabad to build an AI-focused data centre campus with capacity of up to 1 gigawatt, marking a significant expansion of the IT major’s push into AI infrastructure.
HyperVault and its partners are expected to invest up to ₹70,000 crore to build and operate the campus, which will be developed in phases depending on customer demand and technology requirements, TCS said in a regulatory filing.
The facility will be designed for high-density GPU deployments used for AI training, inference and other advanced computing workloads, and will target frontier AI companies and hyperscalers. TCS said the campus will use liquid cooling and incorporate green-energy and water-neutral design principles.
At full build-out, the campus is expected to be among India’s largest AI infrastructure facilities. The project is also expected to generate several thousand direct and indirect jobs across areas including power, cooling, networking, construction, engineering and operations.
The move comes as AI is pushing data centre infrastructure towards much higher power density and specialised cooling requirements.
“HyperVault advances TCS’ Infrastructure-to-Intelligence strategy by bringing together AI-ready infrastructure with our cloud, engineering, enterprise transformation and AI capabilities. Hyderabad offers the scale, talent and ecosystem to serve global customers. We extend our sincere appreciation to the Hon’ble Chief Minister and the Government of Telangana for their steadfast support and progressive, investment-friendly policies,” K Krithivasan, CEO & MD, TCS, said in a statement.
TCS had set up HyperVault as a dedicated vehicle for its AI data centre ambitions and brought in private equity firm TPG as a strategic partner in November 2025. TCS and TPG had then committed up to ₹18,000 crore over the following years, with TPG committing up to ₹8,820 crore. The partnership was aimed at building AI-ready data centre capacity exceeding 1GW.
The latest Telangana project takes that strategy from an announced infrastructure ambition to a specific large-scale campus.
TCS has been seeking to build an offering that extends beyond traditional IT services to the physical infrastructure required to run increasingly compute-intensive AI workloads.
For TCS, the data centre business also represents a departure from the relatively asset-light model that has historically defined India's large IT services companies.
This infrastructure push comes amid a broader global race to build AI compute capacity. Unlike conventional cloud workloads, AI training and inference require dense clusters of GPUs, high-speed networking and substantially greater power and cooling infrastructure.
Hyderabad has emerged as one of India's major data centre locations alongside Mumbai, Navi Mumbai, Chennai, Bengaluru and Delhi-NCR. The government has also been positioning Telangana as an AI and advanced digital infrastructure hub.
“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,” said A. Revanth Reddy, Chief Minister of Telangana.
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