The project aims to boost India’s AI infrastructure through a partnership between HCLTech, Sarvam, and the Odisha government.
HCLTech has announced plans to establish its first AI data center in Bhubaneswar, marking a significant step in India’s push to build sovereign artificial intelligence infrastructure. The project will be developed in partnership with AI startup Sarvam and the Odisha government at the upcoming Odisha Sovereign AI Park.
With a planned investment of Rs 14,257 crore, including financial assistance from the state government, the initiative aims to strengthen India’s AI ecosystem by combining advanced computing infrastructure with locally developed AI models. The value of the state’s financial support has not been disclosed.
Building India’s Sovereign AI Infrastructure
The proposed facility will integrate HCLTech’s full-stack AI capabilities with Sarvam’s foundation models to create AI solutions for both public-sector organisations and private enterprises.
The project is designed to support India’s sovereign AI ambitions by providing infrastructure that meets data sovereignty requirements while enabling multilingual AI services and fostering the country’s growing developer community.
The partnership was formalised through a memorandum of understanding (MoU) signed by HCLTech, Sarvam, and the Odisha government in the presence of Odisha Chief Minister Mohan Charan Majhi and Electronics and Information Technology Minister Mukesh Mahaling.
HCLTech Strengthens Its AI Strategy
HCLTech Chairperson Roshni Nadar Malhotra said the project aligns with the government’s Digital India and Atmanirbhar Bharat initiatives.
She said HCLTech aims to support India’s sovereign AI ecosystem through focused investments and strategic partnerships, adding that Odisha provides an ideal environment to launch the initiative alongside Sarvam.
Chief Executive Officer and Managing Director C. Vijayakumar described the project as an important milestone in HCLTech’s full-stack AI strategy.
He said the data center will help meet rising demand for sovereign AI solutions while expanding the company’s collaboration with Sarvam.
Sarvam Brings Indian AI Models
Sarvam co-founder Pratyush Kumar said the Odisha Sovereign AI Park will combine high-performance computing infrastructure with Indian-developed AI models and real-world enterprise applications.
He added that the partnership will enable Sarvam’s AI capabilities to be deployed at scale across businesses and government systems.
Part of a Larger AI Investment Plan
The Odisha project follows HCLTech’s announcement earlier this month that it plans to invest up to Rs 3,500 crore in AI data centers through a new subsidiary and related entities.
The company said those facilities could eventually provide a combined capacity of 50 megawatts, supporting India’s growing demand for AI computing infrastructure.
HCLTech Invests in Sarvam
HCLTech has also become a strategic investor in Sarvam.
According to a stock exchange filing, the company completed an investment of Rs 1,427.25 crore on 25 June, acquiring a 10.46% stake in the AI startup.
The investment included the purchase of 41,421 Series B2 compulsorily convertible preference shares, which will convert into equity shares at a later stage.
Sarvam recently announced the first close of its planned $300 million Series B funding round, raising $234 million at a post-money valuation of $1.5 billion.
HCLTech committed $150 million as the lead strategic investor, while Bessemer Venture Partners joined the round, and existing investors Khosla Ventures and Peak XV Partners also participated.
Rising Demand for AI Data Centers
HCLTech said demand for AI infrastructure in India is accelerating due to the country’s expanding digital economy, increasing data localisation requirements, and the growing computing power needed to train and deploy advanced AI models.
While the company has not announced a construction timeline or the planned computing capacity of the Bhubaneswar facility, the project represents one of the country’s largest AI infrastructure investments. It strengthens India’s broader ambition to build a self-reliant AI ecosystem.
