Archive · 29 Jul 2026
India's IT Giants Expand into AI Data Centers
India's big IT companies like HCLTech and TCS are building new data centers to support AI.
These centers will help their clients use AI more effectively and keep their data in India.
HCLTech is investing a lot of money to build these centers, and TCS is working with a partner to set up AI-ready data centers.
However, not all companies are doing this.
Infosys decided not to build data centers because it's very expensive.
Some people think these data centers will help the companies grow, while others worry about the high costs.
HCLTech is investing Rs 3,500 crore to build AI-ready data centers, starting in Bhubaneswar.
TCS is setting up AI-ready data centers in partnership with TPG, with one facility to be OpenAI's first in India.
Infosys has decided not to venture into the data center segment due to its capital-intensive nature.
Proponents believe data centers will capture a larger share of AI investments and drive long-term growth.
Skeptics worry about the impact on return on equity (ROE) and the high costs involved.
- Who
- HCLTech, Tata Consultancy Services (TCS), Infosys, Sarvam AI, OpenAI
- What
- Expansion into AI-ready data centers
- When
- Late 2025 for TCS, ongoing for HCLTech
- Where
- Bhubaneswar (Odisha), Maharashtra, Andhra Pradesh
- Why
- To capture a larger share of AI investments and explore new revenue models
Proponents of AI Data Centers
Skeptics of AI Data Centers
Business Growth
Proponents of AI Data Centers
Proponents argue that expanding into AI data centers will capture a larger share of AI investments, driving long-term business growth and exploring new revenue models.
Skeptics of AI Data Centers
Skeptics believe the capital-intensive nature of data centers could negatively impact return on equity (ROE) and may not be worth the investment.
Data Sovereignty
Proponents of AI Data Centers
Proponents highlight that local data centers help meet data sovereignty requirements and provide better control over data analysis and AI work.
Skeptics of AI Data Centers
Skeptics question the necessity of physical data centers, suggesting that cloud solutions might be more cost-effective and scalable.
- HCLTech Investment
- Rs 3,500 crore
- TCS Partnership
- TPG
- OpenAI's First Data Center in India
- Andhra Pradesh
- Infosys's Decision
- Not venturing into data centers
- Expected ROE for Data Centers
- 16-17%
- Expected Revenue Share from Data Centers
- 4-5%