India’s push to build domestic artificial intelligence infrastructure is gaining another dimension, with HCLTech announcing plans to establish its first AI data centre in Bhubaneswar in partnership with Sarvam and the Odisha government. The proposed facility marks a step in the company’s strategy to expand beyond AI services and build capabilities across the AI infrastructure stack.
The announcement, disclosed during HCLTech’s Q2 FY27 earnings call on October 12, comes as enterprises and governments increasingly focus on deploying AI securely, with greater control over data, infrastructure and applications.
For India, the sovereign AI conversation extends beyond developing homegrown AI models. It also involves building the computing infrastructure required to train, run and deploy these models, while addressing concerns around data residency, security and regulatory compliance.
HCLTech’s management highlighted sovereign AI as an emerging opportunity shaped by data residency requirements, regulation, security and the need to develop national capabilities. The Bhubaneswar project, developed in partnership with Sarvam and the Odisha government, is intended to strengthen the infrastructure layer of HCLTech’s broader AI strategy.
The company did not disclose the proposed data centre’s investment, computing capacity, power requirements or commissioning timeline in the earnings call. These details will be important in assessing the project’s eventual scale and its contribution to India’s domestic AI infrastructure.
The announcement also forms part of HCLTech’s broader expansion in Bhubaneswar. Alongside the AI data centre, the company plans to establish a Global Technology Centre in the city to develop AI solutions for global enterprises. The two initiatives indicate an effort to bring infrastructure and technology development capabilities closer together.
HCLTech is also building its presence across other parts of the AI ecosystem. During the quarter, it reported Advanced AI revenue of $219 million, up 78% year on year, while its AI factory proposition grew 64% sequentially. The company is working on integrating computing infrastructure, networking, cybersecurity and AI platforms to help enterprises deploy complex AI environments.
However, the Bhubaneswar announcement should not yet be read as evidence of a particular increase in India’s AI data centre capacity. Its eventual impact will depend on the facility’s specifications, investment and deployment plans.
The larger significance lies in the direction of India’s AI infrastructure strategy. As the country seeks to strengthen domestic AI capabilities, projects combining computing infrastructure, locally developed models and enterprise technology services could become an important part of the sovereign AI ecosystem.
