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Tata Consultancy Services’ data centre subsidiary HyperVault is heading to Hyderabad, where it has secured 264 acres of land to develop a large-scale AI data centre campus with a capacity of up to 1 gigawatt (GW).
The deets: the company is expected to invest a whopping ₹70,000 crore to develop and manage the infrastructure, which will cater to AI companies and hyperscalers.
Funding the bet: HyperVault is being funded through a mix of equity from TCS and private equity firm TPG, along with debt. TCS had earlier secured a $1 billion (around ₹8,820 crore) equity investment from TPG for the data centre venture.
At full capacity, the Hyderabad campus could become one of India’s largest and most advanced AI infrastructure facilities.
What’s different: the project is being designed with green energy and water conservation in mind. And the impact could go beyond just the data centre, creating more demand for power, cooling systems, networking, construction and engineering.
Why now: India’s data centre industry has expanded rapidly over the past few years. The country’s total data centre capacity increased from around 375 MW in 2020 to 1,500 MW in 2025.
The AI push is adding to that demand. Around 38,231 GPUs have been onboarded through 14 empanelled service providers and data centres under the government’s AI compute capacity framework.
These facilities are spread across cities including Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida and Jamnagar.
And all those servers need a lot of power. According to the Ministry of Power, electricity demand from data centres in India is estimated to reach 13.56 GW by 2031-32, and the government is factoring this into its power planning.
Zooming out: the data centre boom isn’t limited to India. Globally, rising demand for cloud computing, streaming and AI is reshaping the digital economy.
The global data centre market, valued at around $160 billion in FY26, is projected to reach $300 billion by FY30. Capacity is also expected to nearly double from 90-100 GW in FY26 to 160-170 GW by FY30.
The bigger opportunity: the money flowing into data centres goes far beyond building the facilities themselves. It creates demand across construction, power and other infrastructure businesses.
With India’s installed data centre capacity projected to reach 7-7.5 GW by 2030 and beyond, the cumulative construction opportunity alone is estimated at $30 billion by FY30, potentially rising to $90 billion by FY35.
