Pranav Hotkar
Bhubaneswar, India - July 23, 2026 - HCLTech is set to establish its first company-owned AI-optimized data center in India in Bhubaneswar, marking a significant step in the IT services firm's expansion into digital infrastructure as demand for artificial intelligence computing accelerates across the country.
The proposed facility will be developed at Info Valley-II in Odisha's Khordha district and will form part of a broader technology campus that also includes a Global Development Centre (GDC). According to state government officials, the project involves an investment of approximately INR 730 crore and is expected to generate around 6,000 high-skilled jobs once operational.
The development follows HCLTech's recent announcement of plans to invest up to INR 3,500 crore in AI-ready data center infrastructure through newly established subsidiaries. While the company previously outlined its nationwide investment strategy, the Bhubaneswar project is expected to become the first physical deployment under that initiative, signaling HCLTech's transition from a provider of managed infrastructure services to an owner and operator of AI-focused data center assets.
The Odisha government has approved the proposal, with a memorandum of understanding expected to be signed between the company and the state. The facility is designed to support artificial intelligence, cloud computing, and high-performance computing workloads, sectors that are driving unprecedented demand for high-density digital infrastructure across India.
For the data center industry, HCLTech's decision reflects the growing importance of emerging regional markets beyond traditional hubs such as Mumbai, Chennai, Hyderabad, and Bengaluru. Odisha has been actively positioning itself as a destination for digital infrastructure investments by expanding industrial land availability, improving power infrastructure, and promoting technology-focused developments.
The project also strengthens Bhubaneswar's growing role in India's data center ecosystem. The city has attracted several digital infrastructure initiatives in recent years, including government-backed data center projects and proposed hyperscale developments, as policymakers seek to establish eastern India as an alternative location for cloud and AI infrastructure.
Industry observers note that AI data centers require significantly greater power density, advanced cooling technologies, and resilient network connectivity than conventional enterprise facilities. As enterprises adopt generative AI and cloud providers expand regional capacity, operators are increasingly evaluating locations that can offer reliable electricity, scalable land parcels, and long-term infrastructure support.
HCLTech's expansion comes amid intensifying competition among technology companies to secure AI-ready infrastructure across India. Global cloud providers, hyperscale operators, and domestic digital infrastructure firms have announced billions of dollars in planned investments to meet growing demand for AI computing capacity.
If completed as planned, the Bhubaneswar facility will represent not only HCLTech's first owned data center in India but also another milestone in the country's evolving AI infrastructure landscape, reinforcing Odisha's ambitions to emerge as a strategic hub for next-generation digital infrastructure.
