Tata Consultancy Services, India's largest IT services company by revenue and market capitalization, said its HyperVault subsidiary and partners plan to invest up to 700 billion rupees ($7.4 billion) in an artificial intelligence data center campus with capacity of up to 1GW in Hyderabad, in the southern Indian state of Telangana.
HyperVault has secured 264 acres of land for the project, which will be developed in phases based on customer demand and technology requirements, TCS said Saturday. It did not provide a timeline for completing the campus or name any customers.
The facility will serve frontier AI companies and hyperscalers, supporting large deployments of graphics processing units used to train and run AI models, the company said.
"We are building infrastructure for where AI is going: higher density, liquid cooling, larger power blocks and faster deployment," HyperVault CEO Deepesh Kiran Nanda said.
The campus will use direct-to-chip liquid cooling, high-density server racks and green energy, TCS said, noting that it will follow "water-neutral design principles."
TCS expects the project to create several thousand direct and indirect jobs and said the site would become one of India's largest AI infrastructure campuses once completed.
The project began with a discussion between Telangana Chief Minister A. Revanth Reddy and Tata Sons Chairman N. Chandrasekaran at the World Economic Forum in Davos in January, according to Telangana IT and Industries Minister D. Sridhar Babu.
TCS expands into AI infrastructure
Last November, TCS announced a partnership with private equity firm TPG to expand HyperVault. The company received $1 billion from TPG to build AI data centers in India. The two also planned to invest 180 billion rupees ($2 billion) into HyperVault over the next few years.
Out of the total commitment of up to $2 billion, TPG agreed to invest up to 88.2 billion rupees for a stake of between 27.5% and 49% in HyperVault, while TCS would remain the majority owner. Reuters reported at the time that the partners also aimed to raise between $4.5 billion and $5 billion in debt for the wider data center business.
TCS did not say whether the planned $7.4 billion investment in Hyderabad includes the earlier financing commitment.
The move takes TCS beyond its traditional IT services business and into more capital-intensive infrastructure. TCS said it generated more than $30 billion in consolidated revenue in the fiscal year ended March 31, 2026. The company currently has a market capitalization of about $88 billion.
The HyperVault project is part of a wider expansion of AI infrastructure in India. Last October, Google said that it would invest $15 billion over five years in an AI data center hub with an initial capacity of 1GW in Visakhapatnam, a city in Andhra Pradesh. Adani Group and Airtel are helping build the project's infrastructure.
A separate joint venture between Reliance Industries, Brookfield and Digital Realty announced plans last November to invest $11 billion over five years in another 1GW AI data center campus in Visakhapatnam.
India's data center boom is also increasing pressure on electricity and water supplies. Last month, Reuters reported that Google's Visakhapatnam project was facing several legal challenges over its potential impact on water supplies and its proximity to a wildlife sanctuary that is home to leopards and pangolins. Google said the project would use advanced air cooling to protect vital local water resources.