Telangana Chief Minister A. Revanth Reddy announced on Saturday that HyperVault, a subsidiary of Tata Consultancy Services (TCS), will invest ₹70,000 crore to construct a massive 1-gigawatt (GW) artificial intelligence data centre campus in Hyderabad. The project, situated in the city’s 'Bharat Future City,' is slated for completion by June 2, 2028, coinciding with Telangana Formation Day. The facility is expected to serve as a cornerstone for India’s AI infrastructure, catering to global hyperscalers and frontier AI companies requiring high-density compute power.
The initiative represents a significant expansion of TCS’s 'Infrastructure-to-Intelligence' strategy, which seeks to integrate AI-ready hardware with cloud, engineering, and enterprise transformation services. By securing 264 acres of land, the company aims to build one of the largest AI infrastructure campuses in the country. The project is projected to generate approximately 7,000 direct and indirect jobs, spanning technical, construction, and operational roles, while positioning Hyderabad as a central hub in the global artificial intelligence ecosystem.
Strategic Investment and Infrastructure Scale
The scale of the proposed 1GW campus is designed to meet the surging demand for high-density GPU deployments, which are essential for modern AI training and inference workloads. According to HyperVault, the facility will support rack-density computing exceeding 170kW, a technical specification that the company claims will be on par with or ahead of global standards. The campus will be developed in multiple phases, with the pace of construction dictated by evolving customer demand and technological requirements.
HyperVault CEO and Managing Director Deepesh Kiran Nanda emphasized that the infrastructure is being built specifically for the future of AI. "We are building infrastructure for where AI is going: higher density, liquid cooling, larger power blocks and faster deployment," Nanda stated. This focus on liquid-cooled compute infrastructure marks a departure from traditional air-cooling methods, which are often considered less efficient for the massive heat loads generated by high-density AI clusters.
Government Vision and Competitive Advantage
Chief Minister Revanth Reddy described the project as a historic milestone for both Telangana and India. During the announcement at the state Secretariat, he highlighted the strategic importance of securing such a massive investment, noting that the state had competed against five other Indian states to win the bid. "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," Reddy remarked.
The project’s origins trace back to discussions held at the World Economic Forum in Davos in January 2026 between Chief Minister Reddy and Tata Sons chairman N. Chandrasekaran. IT and Industries Minister D. Sridhar Babu noted that the rapid approval and land allocation process underscored the state’s commitment to business efficiency. "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," Babu said.
Technical Design and Sustainability Commitments
Beyond raw computing power, the HyperVault campus is being designed with a focus on environmental sustainability. The company has committed to incorporating green energy and water-neutral design principles into the facility’s construction. This approach is increasingly critical for large-scale data centres, which face growing scrutiny regarding their energy consumption and environmental footprint. By utilizing liquid-cooled compute infrastructure, the facility aims to mitigate the efficiency losses typically associated with air-cooling systems in high-density environments.
The integration of these technologies is intended to support the broader AI infrastructure ecosystem, including power distribution, cooling, networking, and advanced data centre operations. As AI models become more complex, the demand for specialized compute infrastructure has transformed from a niche requirement into a form of public infrastructure. By hosting this compute capacity within Telangana, the state government believes it has secured a long-term competitive advantage in the digital economy.
Future Milestones and Implementation Timeline
The project is currently on an aggressive 21-month timeline. Chief Minister Reddy has set a firm deadline of June 2, 2028, for the inauguration of the facility. This schedule requires rapid execution across all phases of development, from initial groundbreaking to the deployment of high-density GPU systems. The project’s success will depend on the ability of HyperVault and its partners to manage the complex logistics of building a 1GW campus while maintaining the promised sustainability standards.
While the project is expected to create thousands of jobs, the long-term impact on the local economy will depend on the sustained growth of the AI sector and the ability of the region to provide the necessary technical talent. As the facility scales, it will likely serve as a benchmark for future large-scale data centre developments in India. The state government remains focused on ensuring that the infrastructure is ready to meet the needs of global enterprises, further cementing Hyderabad’s reputation as a premier destination for high-tech investment.
