3 weeks ago
Odisha's Gigawatt Gamble: Adani, HCLTech Plan Massive AI Data Centres
Companies like HCLTech and the Adani Group want to build giant buildings full of computers, called data centres, in the Indian state of Odisha.
These buildings power artificial intelligence, or AI, which helps computers do smart things.
HCLTech has signed a deal to spend about Rs 14,257 crore on its first AI data centre in India, in Bhubaneswar.
The Adani Group has proposed spending even more, one lakh crore rupees, on an even bigger one.
A data centre that size could use about a fifth of all the electricity Odisha uses in a whole year.
Odisha's power network already loses almost a fifth of its electricity, so experts worry it may not be ready.
The data centres also need a lot of water, and Odisha's rivers are already used by farmers.
Supporters say the projects will bring jobs, tax money, and new digital services in the Odia language.
Artificial intelligence data centres do not create many jobs by themselves, though.
Whether the gamble helps ordinary people depends on how carefully the state plans.
In July 2026, HCLTech signed an MoU with the Odisha government and AI startup Sarvam for a Rs 14,257 crore (~$1.5 billion) AI data centre in the proposed Odisha Sovereign AI Park in Bhubaneswar, its first in India.
In early August 2026, the Adani Group proposed investing Rs 1 trillion for a 1 GW AI-focused data centre on about 250 acres near Cuttack, reported by Business Standard as the biggest-ever investment by an Indian company in the sector, second only to Google's intended Andhra Pradesh facility.
The pipeline also includes HCLTech's Rs 730 crore Global Technology Centre (5,000+ employees, by 2028), Zoho's Rs 306 crore Khordha facility, RBI's Rs 169 crore data centre, a state-run Rs 266.48 crore facility, plus CtrlS and Yotta involvement.
Odisha offers land, coastal connectivity, a power-surplus grid and the Puri undersea cable landing station, unlike land-scarce Mumbai and Chennai, while eastern India holds less than 3% of national data centre capacity.
Concerns: a 1 GW plant could consume close to a fifth of Odisha's annual electricity, discoms lost 18.6% of power in 2023-24, and the Union Power Ministry raised its AI power demand estimate to 26.3 GW by 2031-32.
India's data centre capacity is forecast to grow from 2.2 GW in 2025 to 12 GW by 2030, according to Wood Mackenzie, and the market was valued at ~$9.79 billion in 2025.
- Who
- HCLTech, the Adani Group, AI startup Sarvam, and the Odisha government; other investors and operators include Zoho Corporation, the Reserve Bank of India, CtrlS and Yotta.
- What
- Announcements and proposals to build large AI-focused data centres and related digital infrastructure in Odisha, including HCLTech's Rs 14,257 crore facility and Adani's Rs 1 trillion, 1 GW proposal.
- Where
- Odisha, India — mainly Bhubaneswar for HCLTech, Cuttack as a tentative Adani location, Khordha for Zoho, and Puri for the undersea cable landing station.
- When
- July 2026 for the HCLTech MoU and early August 2026 for the Adani Group proposal.
- Why
- To tap India's rapidly growing AI data centre demand and fix the imbalance leaving eastern India with less than 3% of national capacity, while generating fiscal revenue, jobs and digital services for Odisha.
Investment Optimists
Infrastructure Skeptics
Economic opportunity vs. grid readiness
Investment Optimists
The projects bring tax revenue, jobs and address the imbalance that leaves eastern India with less than 3% of national data centre capacity.
Infrastructure Skeptics
Odisha's grid loses 18.6% of its power, has barely 4,500 smart meters, and gigawatt-scale always-on loads need heavy investment in transmission and storage first.
Jobs promise vs. low employment reality
Investment Optimists
The HCLTech Global Technology Centre alone will create 5,000+ high-skilled jobs in Bhubaneswar and help reverse the region's talent drain.
Infrastructure Skeptics
AI data centres are capital-intensive and low-labour; a 1 GW, Rs 1 trillion campus may employ only a few hundred to a couple of thousand permanent staff.
Digital gateway vs. enclave economy risk
Investment Optimists
Odisha is building unique assets like the Puri cable landing station, co-investing, and positions itself as eastern India's digital gateway.
Infrastructure Skeptics
Without deliberate policy, there is a risk of an enclave economy where the Global South hosts the power- and water-hungry layer of AI while value stays in the Global North.
Key facts
- HCLTech AI data centre
- Rs 14,257 crore (~$1.5 billion) at Odisha Sovereign AI Park, Bhubaneswar
- Adani Group proposal
- Rs 1 trillion for a 1 GW AI-focused data centre on ~250 acres, Cuttack tentative
- Global Technology Centre
- Rs 730 crore, 5,000+ employees, operations by 2028
- India data centre market
- ~$9.79 billion in 2025, projected to ~$21 billion by 2031
- India capacity forecast
- 2.2 GW (2025) to 12 GW by 2030, per Wood Mackenzie
- Odisha power capacity
- ~9,118 MW installed as of November 2025
- AI power demand estimate
- 26.3 GW added by 2031-32, Union Power Ministry (July 2026)
- Water source
- Mahanadi basin, already contested between users
Quotes
Odisha state government
State government preparing policy
“HCLTech signed a memorandum of understanding with the Odisha government and the AI startup Sarvam to build its first AI data centre inside the proposed Odisha Sovereign AI Park in Bhubaneswar, with a planned capital outlay of Rs 14,257 crore roughly $1.5 billion.”
thestatesman.com
“Adani Group has proposed investing Rs 1 trillion to establish a 1 gigawatt, AI-focused data centre in Odisha, seeking around 250 acres of land, with Cuttack mentioned as a tentative location.”
thestatesman.com
Sources
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