HCLTech is set to establish its first AI data centre at the upcoming Odisha Sovereign AI Park in Bhubaneswar, India, with a planned investment of Rs142.5bn ($1.4bn).

The new facility will be developed in collaboration with tech firm Sarvam and the Government of Odisha.

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The investment includes financial support from the state government.

This project aims to contribute to India’s sovereign AI development and local software ecosystem. The data centre will draw upon its full-stack AI capabilities alongside Sarvam’s foundation models.

The facility is intended to offer sector-specific AI solutions to both private and public sector customers and address demands for solutions that meet governmental sovereignty requirements.

HCLTech also stated the development is expected to help deliver multi-lingual, AI-based services more widely across India.

A memorandum of understanding (MoU) was signed by HCLTech, Sarvam and the Government of Odisha in the presence of Chief Minister Mohan Charan Majhi, Minister of Electronics and IT Dr Mukesh Mahaling, HCLTech chairperson Roshni Nadar Malhotra, HCLTech CEO and managing director C Vijayakumar, and Sarvam co-founder Pratyush Kumar.

C Vijayakumar said: “This is an important milestone in our full-stack AI play and will enable us to serve the large demand for sovereign AI solutions and unlock the scale of our strategic partnership with Sarvam.

“Odisha offers a progressive policy environment backed by excellent infrastructure and we look forward to working with them in collaboration with Sarvam.”

Pratyush Kumar said: “The Odisha Sovereign AI Park will connect high-performance compute with Indian models and real-world applications. Together with HCLTech, we are excited to bring Sarvam’s full-stack AI capabilities to enterprises and public systems at scale.”

India’s data centre industry is expanding rapidly, driven by digital economy growth, data localisation, and technology infrastructure needs to support AI training and inference.

Prior to this, HCLTech announced plans to invest up to Rs35bn ($366m) for the establishment of AI data centres in India.