HCLTech & Sarvam AI to Build $1.48B AI Data Center in Odisha
By Vikramaditya Sen | Published July 25, 2026 | 6 min read
India doubles down on sovereign AI as one of the country's biggest AI infrastructure projects takes shape.
IT major HCLTech and generative AI pioneer Sarvam AI have officially announced a joint $1.48 Billion (₹12,300 Crore) venture to construct one of India's largest mega AI data center campuses in Odisha. The strategic initiative marks a pivotal milestone in India's push for Sovereign Compute Infrastructure, delivering high-density GPU acceleration tailored specifically for multilingual Indian Large Language Models (LLMs) and high-performance enterprise workloads.
Located near Bhubaneswar's emerging InfoValley tech corridor, the greenfield data center facility is designed for an initial capacity of 120 MW, with plans to scale to 300 MW over the next three years.
Key Project Specifications & Investment Metrics
| Metric / Dimension | Project Detail | Strategic Significance |
|---|---|---|
| Total Investment | $1.48 Billion (₹12,300 Cr) | One of Asia-Pacific's largest sovereign AI infrastructure investments |
| Initial Compute Power | 120 MW High-Density Liquid Cooled | Scalable to 300 MW dedicated AI workload capacity |
| Primary Industry Partners | HCLTech & Sarvam AI | Enterprise IT integration paired with domestic AI model expertise |
| Target GPU Deployment | 32,000+ Next-Gen Accelerators | Custom clusters optimized for LLM pre-training & fine-tuning |
| PUE (Power Usage Effectiveness) | Target < 1.25 | Powered by 70% renewable hydro & solar power from Odisha grid |
| Expected Operational Date | Q2 2027 (Phase 1 launch) | Accelerated 18-month construction & commissioning timeline |
Accelerating Sovereign AI for 1.4 Billion Citizens
The partnership fuses HCLTech’s global infrastructure management expertise with Sarvam AI’s cutting-edge Indian language models (such as Sarvam-1 and Shunya). By housing training compute directly on Indian soil, the Odisha data center ensures absolute data sovereignty, low latency for domestic enterprises, and strict compliance with national privacy regulations.
"To build true AI independence, India requires world-class compute infrastructure designed for native languages and localized enterprise security,"stated Pratyush Kumar, Co-founder of Sarvam AI. "This $1.48 billion Odisha facility gives Indian researchers, startups, and enterprises the compute power of Silicon Valley within home borders."
Strategic Advantages of Odisha as an AI Infrastructure Hub
Industry experts highlight several structural advantages that led to Odisha being chosen for this mega facility:
1. Abundant Clean Energy: Odisha’s vast hydroelectric reservoirs and expanding solar infrastructure supply uninterrupted green power, crucial for meeting net-zero carbon goals.
2. Subsea Cable Connectivity: Direct coastal access to landing stations enables ultra-low latency routing to South East Asia and the Middle East.
3. State Policy Support: The Odisha Electronics & IT Policy 2026 offers custom power subsidies, single-window environmental clearances, and stamp duty waivers for mega data centers.
Impact on India's Broader Tech Ecosystem
This mega data center investment builds upon earlier momentum in India's Spacetech & Deeptech Boom and aligns with Enterprise AI's shift to Autonomous Automation. As global tech giants scramble for AI compute, India's sovereign data centers guarantee domestic startups access to affordable, high-end GPU capacity.
