TCS subsidiary HyperVault has signed an MoU with the Telangana government to build India's largest AI data centre campus in Hyderabad. The Rs 70,000-crore project will have a 1 GW capacity and create around 7,000 jobs.

Historic Rs 70,000-Crore Investment

Telangana is set to host India’s largest Artificial Intelligence (AI) data centre campus, with Tata Consultancy Services (TCS) subsidiary HyperVault signing a Memorandum of Understanding (MoU) with the state government for the Rs 70,000-crore project.

The proposed state-of-the-art AI data centre campus will be developed across more than 250 acres in Hyderabad and will have a capacity of 1 gigawatt (1,000 megawatts). The project, being developed by HyperVault and its partner companies, is expected to attract an investment of approximately Rs 70,000 crore and create around 7,000 direct and indirect employment opportunities.

High-Level Meeting Details

A TCS delegation met Telangana Chief Minister A. Revanth Reddy at the Secretariat on Saturday to discuss the project. IT and Industries Minister Duddilla Sridhar Babu, along with Ministers N Uttam Kumar Reddy, Komatireddy Venkat Reddy and Adluri Laxman Kumar, was also present.

TCS CEO K Krithivasan, COO Aarthi Subramanian, HyperVault President V Rajanna, and HyperVault CEO and Managing Director Deepesh Nanda attended the meeting.

OpenAI Chief Technology Officer Uday Rudraraju also joined the meeting through video conference from the United States.

Senior state government officials, including Chief Secretary Sanjay Jaju, Government Advisor K Ramakrishna Rao, Invest Telangana CEO B Ajit Reddy and TGIIC Managing Director K Shashank, were also present.

Campus Infrastructure and Purpose

The proposed campus will provide large-scale computing infrastructure for leading AI companies, hyperscalers and global enterprises. It will feature advanced high-performance computing systems and liquid-cooling technologies. The facility is expected to emerge as one of the largest and most advanced AI infrastructure campuses in the country.

CM Hails 'Historic Initiative' for Telangana's Future

Chief Minister Revanth Reddy described the project as a historic initiative for Telangana and India, saying Hyderabad was emerging as a global leader in the AI revolution. He said that as AI models and computing capacity are expected to become critical public infrastructure in the future, establishing such capabilities in Telangana would provide a major strategic advantage to the state.

The Chief Minister congratulated the TCS representatives on the investment and assured the company of all necessary support and cooperation from the state government.

Reddy said the decision by TCS to establish the project in Telangana was in line with his vision for the state and would provide a strong foundation for the development of Future City. He also said the investment would contribute towards Telangana's goal of becoming a USD 3 trillion economy by 2047 under the Telangana Rising Vision-2047.

Economic Impact and Sustainability Goals

The project is expected to generate opportunities across several allied sectors, including power, cooling, networking, construction, engineering and data centre operations. According to the state government, the campus will focus on environmental sustainability through the use of green energy and a water-neutral design.

Securing the Landmark Investment

Discussions on the project began during a meeting between Chief Minister Revanth Reddy and Tata Sons Chairman N Chandrasekaran in Davos in January 2026. Following the meeting, the Telangana government and TCS held several rounds of discussions before finalising the project within a few months. The state government said Telangana faced competition from five other states before securing the major investment.

The project is expected to further strengthen Hyderabad's position as a global hub for AI and data centre infrastructure.

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