Tata Consultancy Services commits $7.4 billion to build one-gigawatt AI data center campus in Hyderabad

Tata Consultancy Services' subsidiary HyperVault has committed 700 billion rupees ($7.4 billion) to build a massive 264-acre, one-gigawatt AI data center campus in Hyderabad, Telangana. Designed for high-density GPU deployments, the facility aims to support frontier AI companies and hyperscalers. Telangana Chief Minister A. Revanth Reddy has set an ambitious completion deadline of June 2, 2028, to coincide with Telangana Formation Day. The project is expected to create 7,000 jobs and incorporate green energy and water-neutral design principles.

TCS HyperVault investment commitment

• ▪Prior to the Hyderabad announcement, TCS HyperVault secured 180 billion rupees (approximately $1 billion) from private equity firm TPG to fund its data center business.
• ▪The investment commitment for the Hyderabad data center project followed discussions between Telangana Chief Minister A. Revanth Reddy and Tata Sons Chairman N. Chandrasekaran at the World Economic Forum in Davos in January 2026.
• ▪Tata Consultancy Services subsidiary HyperVault and its partners committed 700 billion rupees (approximately $7.4 billion to $8.2 billion) to build an artificial intelligence data center campus in Hyderabad, Telangana.

One gigawatt AI campus

• ▪The Hyderabad facility is designed for high-density GPU deployments to support liquid-cooled compute infrastructure, AI training, inference, and advanced computing workloads for frontier AI companies and hyperscalers.
• ▪The planned TCS HyperVault campus in Hyderabad's Future City will span 264 acres and feature a target capacity of up to one gigawatt.

June 2028 completion deadline

• ▪Telangana Chief Minister A. Revanth Reddy assured investors of policy continuity in Telangana, stating that political and ideological differences would not affect the state's investment policies.
• ▪Telangana Chief Minister A. Revanth Reddy set a completion and inauguration deadline of June 2, 2028, which coincides with Telangana Formation Day, representing a 21-month timeline from the September 5, 2026 announcement.

Seven thousand jobs created

• ▪The TCS HyperVault data center project in Hyderabad is expected to create approximately 7,000 direct and indirect jobs across technical, construction, engineering, and operations roles.
• ▪Telangana state officials stated that Telangana secured the TCS HyperVault investment after competing against five other Indian states.

Green energy water-neutral design

• ▪TCS HyperVault stated that the Hyderabad data center development will incorporate green energy solutions and water-neutral design principles.
• ▪Unlike Indian regulations, European Union rules adopted in 2024 require data centers above 500 kilowatts to report annual water and energy metrics to a European database by May 15 each year.

India AI infrastructure competition

• ▪The European Union has opened bidding for up to seven AI gigafactories worth approximately 30 billion euros, contrasting with India's privately funded infrastructure push like the TCS HyperVault project.
• ▪TCS HyperVault's one-gigawatt project joins competing Indian data center expansions from major domestic conglomerates including Reliance Industries and Adani Group, alongside global hyperscalers.