Hyderabad to Get Major AI Data Center Campus

Hyderabad is preparing for a major addition to its technology landscape, with plans for a large artificial intelligence data center campus backed by a proposed investment of about Rs 70000 crore.
TCS subsidiary HyperVault has signed an agreement with the Telangana government for the project. The development was discussed during a meeting at the state Secretariat between a TCS delegation, Chief Minister Revanth Reddy and IT Minister Duddilla Sridhar Babu on Saturday.
The proposed campus will come up across more than 264 acres and is planned to have a power capacity of 1 gigawatt. HyperVault and its partner companies are expected to take up the investment needed to build and operate the facility.
TCS Chief Executive Officer and Managing Director K Krithivasan said the project could create nearly 7000 direct and indirect jobs. The employment impact is expected to spread beyond the data center itself as several other businesses will be needed during construction and later operations.
A project of this size will require a wide range of supporting services. Power infrastructure, cooling equipment, networking, construction, engineering and technical operations are among the areas that could see additional demand once work begins.
The campus is being planned mainly to handle the enormous computing needs of global companies, hyperscalers and large enterprises. It will use high performance computing systems and technologies such as liquid cooling to manage the demands of modern AI workloads.
The timing is significant. AI services are expanding rapidly, and companies need much more computing capacity to train and run increasingly complex models. This has turned large data centers into an important part of the technology infrastructure being built around the world.
For Hyderabad, the proposed development could further strengthen an ecosystem that already has a strong presence of technology and digital businesses. A large AI focused facility could also make the city more attractive to companies looking for nearby computing infrastructure.
The project is also expected to place emphasis on energy and water efficiency. The planned campus will use green energy and incorporate a water neutral design, according to the proposal.
That aspect is particularly important for large data centers because their computing equipment requires substantial electricity and cooling. Using cleaner energy and more efficient water management could help reduce the environmental burden of the facility as its operations expand.
The agreement brought together senior government officials and executives from the technology sector. Ministers Uttam Kumar Reddy, Komatireddy Venkat Reddy and Adluri Laxman Kumar were among those present, along with Chief Secretary Sanjay Jaju and government adviser K Ramakrishna Rao.
TCS Chief Operating Officer Aarthi Subramanian, HyperVault President V Rajanna and Chief Executive Officer and Managing Director Deepesh Nanda also attended the meeting.
If the proposed plans move forward as announced, the campus would become a significant investment in Hyderabad’s AI and data center infrastructure. Its combination of computing capacity, private investment and employment potential makes the project an important development for Telangana’s technology sector.