TCS-backed HyperVault has secured 264 acres in Hyderabad, Telangana, to develop an AI-focused data center campus with capacity of up to 1GW. The project targets frontier AI companies and hyperscalers that need dense GPU infrastructure for training, inference and other advanced computing workloads. Rather than bringing the entire capacity online at once, HyperVault plans a phased buildout tied to customer demand and evolving technology requirements. Moreover, that approach gives the company room to scale power, cooling and computing capacity as AI infrastructure requirements continue to grow.

The planned Hyderabad AI campus could become one of India’s largest and most advanced dedicated AI infrastructure developments once HyperVault completes the full buildout. Its design will incorporate green energy and water-neutral principles, putting resource efficiency alongside the campus’s computing ambitions. The scale matters because AI facilities increasingly require substantially larger power blocks and specialized cooling architectures than conventional enterprise data centers. Hyderabad therefore becomes a strategic platform for HyperVault to combine large-scale compute infrastructure with the wider capabilities of the Tata Consultancy Services ecosystem.

₹70,000 crore investment could reshape regional AI supply chains

HyperVault and its partners expect to invest up to ₹70,000 crore in building and managing the infrastructure. The capital commitment extends beyond servers and data halls, with the project expected to stimulate activity across power, cooling, networking, construction, engineering and facility operations. It could generate several thousand direct and indirect jobs across the regional ecosystem as the development progresses through successive phases. Meanwhile, the project strengthens Telangana’s effort to position itself as a major destination for AI infrastructure and advanced digital technology investment.

The project’s significance extends beyond the physical campus because the surrounding infrastructure will determine how quickly AI capacity can move from planning to deployment. High-density GPU environments require coordinated access to electricity, advanced thermal management, networking capacity and specialized engineering expertise. HyperVault’s strategy places those requirements within a single large-scale development rather than treating AI compute as a conventional data center expansion. As a result, the Hyderabad project could become an important test of how quickly India can build infrastructure capable of supporting increasingly demanding AI workloads.

Telangana positions Hyderabad for the global AI race

Telangana Chief Minister Shri A. Revanth Reddy described the project as ‘historic’ for both Telangana and India during a meeting with officials from TCS’ HyperVault. He connected the investment directly to the changing role of computing infrastructure in the AI economy, arguing that access to compute is becoming increasingly important as AI adoption accelerates.  “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 the Chief Minister. His comments underline the state’s ambition to compete for infrastructure-intensive AI investment rather than focusing solely on software and services.

IT & Industries Minister D. Sridhar Babu, who led negotiations for the agreement, framed the project around Telangana’s ability to execute technology investments quickly. “We tell the investors and corporations across the world, Telangana Means Business. We move at the speed and with clarity of process that matches the expectations of the tech and corporate world.” He said the agreement originated from a conversation between Chief Minister Revanth Reddy and N. Chandrasekaran, Chairman of Tata Sons, in Davos in January this year. “This agreement germinated from a conversation between the Hon’ble Chief Minister with N. Chandrasekaran, Chairman of Tata Sons, in Davos in January this year. Since then, within a few months, officials and our friends at HyperVault and TCS have moved at the speed of thought to make this happen,” he said.

TCS links infrastructure expansion to its AI strategy

K Krithivasan, CEO & MD, TCS, positioned HyperVault within the company’s broader infrastructure strategy rather than as an isolated data center investment. “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.” Consequently, the statement points to a model in which physical compute infrastructure connects directly with TCS’ existing cloud, engineering and enterprise technology capabilities.

Deepesh Kiran Nanda, CEO and MD, HyperVault AI Data Center Limited, highlighted the technical requirements driving the development. “We are building infrastructure for where AI is going: higher density, liquid cooling, larger power blocks and faster deployment. Hyderabad gives us the foundation to build that at scale for frontier AI companies and hyperscalers. We thank the Government of Telangana for extending its support to the development of the infrastructure that will power intelligence.” Therefore, the combination of 1GW potential capacity, specialized cooling and phased deployment signals a bet on sustained demand for large-scale AI compute in India, with Hyderabad positioned at the center of that expansion.