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HyperVault to Build Up to 1GW Facility Across 264 Acres in Telangana

Tata Consultancy Services’ subsidiary HyperVault and its partners plan to invest up to ₹70,000 crore (about $7.41 billion) to develop an artificial-intelligence data center campus in Hyderabad, marking one of India’s largest planned private-sector AI-infrastructure commitments. The facility is designed for up to 1 gigawatt (GW) of capacity and will be built on 264 acres secured by HyperVault in Telangana.

As per Astute Analytica, India data center market was valued at US$ 8.94 billion in 2025 and is projected to hit the market valuation of US$ 31.36 billion by 2035 at a CAGR of 13.37% during the forecast period 2026–2035.

The project will be developed in phases, with the timing and scale of build-out aligned to customer demand and technology requirements. HyperVault said the campus will target frontier AI companies, hyperscalers and global enterprises seeking large-scale, high-density computing capacity.

Designed for High-Density AI Workloads

Unlike conventional enterprise data centres, the proposed campus is intended to support compute-intensive AI training, inference and other advanced workloads. HyperVault has said its infrastructure will use high-density, liquid-cooled compute systems—an important design choice for hardware configurations that generate substantially more heat than traditional server deployments.

At full capacity, the campus could provide up to 1,000 megawatts of IT infrastructure. That scale would place the development among India’s largest dedicated AI data-center projects, although its ultimate capacity, construction pace and capital deployment remain contingent on phased execution.

A New Infrastructure Play for TCS

The announcement signals a material expansion of TCS’s presence in the digital-infrastructure value chain. India’s largest IT-services exporter has traditionally generated revenue by providing technology consulting, outsourcing and managed services; through HyperVault, it is seeking to build infrastructure that can host the AI workloads of large cloud providers and enterprise customers. 

Importantly, the ₹70,000 crore figure is an up-to investment estimate by HyperVault and its partners, rather than an amount stated as being funded solely by TCS. The company has not publicly identified the partners, financing mix, customer commitments or project completion timetable in the reported announcement.

Telangana Strengthens AI Ambitions

The proposed campus would add momentum to Telangana’s push to position Hyderabad as a major data-center and AI-computing location. Telangana government representatives said the HyperVault project is the state’s largest agreement with a private-sector company, and estimated that it could create around 7,000 direct and indirect jobs. 

The project is expected to require significant supporting infrastructure, particularly reliable power supply, transmission connectivity, water and cooling systems, fiber networks, and specialized construction capacity. The large land parcel and phased development structure give HyperVault room to scale the campus as AI-compute demand develops.

The Strategic Significance

The investment underscores how AI is reshaping infrastructure spending in India. As global cloud providers and AI developers seek computing capacity closer to fast-growing enterprise and consumer markets, India is becoming a more consequential location for data-center investment.

For TCS, execution will be the key test: converting a major land acquisition and investment plan into contracted, operational high-density compute capacity. If completed at the planned scale, HyperVault’s Hyderabad campus would establish the company as a significant participant not only in AI services, but also in the underlying physical infrastructure that powers them.