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HCL Technologies (HCLTech) has approved an investment of up to INR 3,500 crore to establish AI-focused data centres in India as part of its expansion into the full-stack artificial intelligence market. The company plans to make the investment through newly formed subsidiaries and aims to develop up to 50 MW of AI data centre capacity. The move comes as India's data centre industry continues to expand due to rising AI adoption, data localisation requirements and increasing demand for high-performance computing infrastructure across businesses and government organisations.
HCL Technologies (HCLTech) has approved an investment of up to INR 3,500 crore to establish AI data centres in India, marking the company's entry into the full-stack artificial intelligence market. The decision was approved by the company's board as it looks to address the growing demand for AI-driven services and solutions across private enterprises as well as government organisations.
The investment will be made through new direct and step-down subsidiaries that HCLTech will establish specifically for this business. The company said the planned investment has the potential to create AI data centre infrastructure with a capacity of up to 50 MW.
According to HCLTech, the new AI data centres will complement its existing capabilities in AI data centre design, AI cloud operations and software solutions, allowing the company to provide integrated end-to-end AI infrastructure and technology services. The company believes this combination will strengthen its ability to serve enterprises looking for AI-ready digital infrastructure.
The company said India's data centre sector is witnessing strong growth, supported by the rapid expansion of the digital economy, increasing data localisation requirements and the need for advanced computing infrastructure to support GPU-based AI training and inference workloads. These factors have accelerated investments in AI-ready facilities across the country.
Industry estimates cited by HCLTech indicate that India's data centre capacity is expected to increase from the current 1.8 GW to 5-7 GW by 2030, with AI-focused data centres expected to account for a significant share of this expansion. The growth is also being supported by increasing cloud adoption, enterprise digital transformation, rising demand for generative AI applications and government initiatives aimed at strengthening digital infrastructure.
HCLTech Managing Director and CEO C Vijayakumar said the combination of rising AI demand, supply-side constraints and the growing focus on digital sovereignty has created a strong opportunity for the company to become a full-stack AI technology solutions provider. He added that the company's expansion into AI data centres would enable it to capture greater value as the market shifts from traditional physical infrastructure towards AI-ready technology platforms. He also said the investment is expected to strengthen HCLTech's managed services and outcome-based services offered to its global clients.
The announcement comes at a time when India is emerging as one of the world's fastest-growing technology markets. Several technology companies, cloud service providers and data centre developers have been expanding their presence in the country to support AI workloads, hyperscale cloud services and enterprise digital transformation. The demand for AI-ready infrastructure has also increased following the rapid adoption of generative AI across industries, creating fresh opportunities for investments in advanced data centre capacity.
Source PTI
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