TCS to Build 1GW AI Data Center in Hyderabad for ₹700 Billion
HyperVault, a subsidiary of Tata Consultancy Services (TCS), has acquired 264 acres of land in Hyderabad, India, to construct a 1GW AI data center campus. HyperVault and its strategic partners plan to invest up to 700 billion Indian rupees (approx. $8.4 billion USD) into the infrastructure's construction and long-term operation. Once completed, the campus will be one of India's largest and most advanced AI compute hubs, capable of hosting high-density GPUs for AI training, inference, and high-performance computing. It highlights India's expanding role in global AI infrastructure and TCS's strategic pivot toward capital-intensive cloud infrastructure to serve major enterprise clients like Porsche. The facility will be constructed in phases to align with customer compute demand and technical hardware iterations. The project is also expected to generate thousands of direct and indirect jobs in the local region.
## BACKGROUND
As generative AI workloads explode, data center power demands are rapidly shifting from megawatt scale to gigawatt-scale campuses designed to power tens of thousands of modern GPUs. To manage the heavy capital expenditures required for large-scale data centers, TCS partnered with investment firm TPG for its HyperVault AI data center entity.