HyperVault, a wholly owned subsidiary of Tata Consultancy Services, has acquired 264 acres near Hyderabad to develop a Rs 70,000-crore artificial intelligence data centre campus. With a capacity planned at 1 gigawatt, the project aims for inauguration on Telangana’s formation day in June 2028 and is expected to generate around 7,000 jobs.
- Rs 70,000 crore investment for 1 GW AI data centre near Hyderabad
- Targeted completion by June 2028 with 7,000 jobs expected
- Project backed by TCS and private equity firm TPG
What happened
Tata Consultancy Services’ data centre subsidiary, HyperVault, has secured 264 acres in Telangana's Future City near Hyderabad to build a large-scale AI data centre campus. The Rs 70,000-crore project, announced on September 5, 2026, targets a capacity of up to 1 gigawatt and is one of the largest AI data centre investments announced in India. The Telangana government, led by Chief Minister A. Revanth Reddy, requested the project be completed within 21 months, aiming for an inauguration on the state's formation day, June 2, 2028.
The initiative leverages advanced infrastructure including liquid-cooled computing and renewable energy integration, designed to support hyperscale cloud operators and AI developers. HyperVault, established as a wholly owned TCS subsidiary in late 2025, has raised Rs 18,000 crore from private equity firm TPG, highlighting the role of external funding in the investment. Discussions that led to this project began at the World Economic Forum in Davos earlier in 2026, after which the involved parties finalized the investment plan with Telangana officials.
Why it matters
This development reinforces Telangana’s position as a key hub for advanced AI and data centre infrastructure in India amid growing demand for digital services and cloud capabilities. The scale of the investment and power capacity target—1,000 megawatts—place HyperVault's campus among the largest AI-focused data centre projects in the country, boosting local employment and technology innovation.
Moreover, the project aligns with sustainability goals by incorporating renewable energy usage and water-neutral cooling technologies, which are critical given the high power consumption typical of AI data centres. The collaboration between a leading Indian IT conglomerate and private equity reflects increasing appetite for large-scale data infrastructure investments across India, yet execution risks remain given the lack of disclosed timelines for construction permits, power agreements, and phased commissioning.
What to watch next
Additionally, observing financing progress will be important since the total Rs 70,000-crore budget relies on a combination of TCS, private equity, and potentially other investors. Comparisons with other announced data centre projects across Telangana, Andhra Pradesh, and Gujarat—many of which have not yet reached operational stages—will help assess the likelihood of HyperVault achieving its ambitious deadlines and delivering on its envisioned scale.