Archive · 8 Sep 2026
Vembu Blames DMK Rhetoric for Tamil Nadu Data Centre Loss
A large company-backed AI data-centre project is planned for Hyderabad instead of Tamil Nadu.
The project could cost up to ₹70,000 crore.
Tamil Nadu’s industries minister asked why his state did not receive it.
He said Tamil Nadu has strong cables, renewable energy, skilled workers and technology businesses.
Sridhar Vembu said such decisions are made over a long period, not in just a few months.
He also said the DMK’s criticism of North Indians, Hindi and the central government may worry investors from other parts of India.
The minister and Vembu therefore gave different explanations for why Tamil Nadu did not get the project.
The articles do not establish one confirmed reason for the decision.
TCS subsidiary HyperVault AI Data Center Ltd secured 264 acres in Hyderabad for an AI data-centre campus.
The project, with partners, is expected to involve investment of up to ₹70,000 crore and capacity of up to 1 GW.
Tamil Nadu Industries Minister Dr TRB Rajaa questioned why the state missed the investment despite its data-centre advantages.
Zoho founder Sridhar Vembu said large investment decisions take years and involve multiple layers of discussions.
Vembu argued that the DMK’s rhetoric on North Indians, Hindi, the Centre and Sanatana Dharma may have damaged Tamil Nadu’s investor image.
- Who
- TCS subsidiary HyperVault AI Data Center Ltd and its partners are associated with the project; Tamil Nadu Industries Minister Dr TRB Rajaa and Zoho founder Sridhar Vembu debated why Tamil Nadu did not secure it.
- What
- A proposed AI data-centre campus worth up to ₹70,000 crore is being developed in Hyderabad rather than Tamil Nadu.
- When
- The debate followed TCS’s announcement; Rajaa posted on Monday and Vembu responded on Tuesday.
- Where
- The project is planned on 264 acres in Hyderabad, Telangana, while the dispute concerns Tamil Nadu.
- Why
- Rajaa highlighted infrastructure and ecosystem factors, while Vembu cited the long investment process and the DMK’s political rhetoric as possible influences.
Tamil Nadu Government View
Sridhar Vembu View
Why the project went to Hyderabad
Tamil Nadu Government View
Dr TRB Rajaa questioned why Tamil Nadu lost the project despite its subsea connectivity, renewable-energy capacity, talent and established data-centre ecosystem.
Sridhar Vembu View
Sridhar Vembu said major investment decisions develop over a longer period and suggested Tamil Nadu’s political image may have reduced investor confidence.
Role of political rhetoric
Tamil Nadu Government View
Rajaa’s response focused on the project’s location and accused critics of selective outrage rather than identifying political rhetoric as the cause.
Sridhar Vembu View
Vembu argued that DMK remarks about North Indians, migrant workers, Hindi, the Centre and Sanatana Dharma are noticed by businesses elsewhere in India.
Relations with the Centre
Tamil Nadu Government View
The article presents Tamil Nadu as having infrastructure and industrial strengths relevant to attracting large data-centre projects.
Sridhar Vembu View
Vembu contrasted Tamil Nadu with Andhra Pradesh, Telangana, Kerala and Karnataka, which he described as more pragmatic in dealing with the Centre and attracting investment.
- Proposed investment
- Up to ₹70,000 crore
- Project capacity
- Up to 1 GW
- Project site
- 264 acres in Hyderabad
- Project entity
- HyperVault AI Data Center Ltd, a TCS subsidiary
- Tamil Nadu’s cited advantages
- Subsea cable connectivity, renewable energy, engineering talent, a mature data-centre ecosystem and electronics manufacturing
- Vembu’s explanation
- Investment decisions take longer than three months, and political rhetoric may affect investor perceptions
- Tamil Nadu investment comparison
- The proposed project could exceed the ₹67,542 crore represented by 97 MoUs announced at Tamil Nadu’s first major investment conclave