Quick Take
- HyperVault, a TCS subsidiary, will invest up to Rs 70,000 crore in a Hyderabad AI data centre.
- The campus spans 264 acres and will reach 1 GW of capacity, built in phases.
- Telangana CM A. Revanth Reddy wants it opened by June 2, 2028.
HyperVault, a subsidiary of Tata Consultancy Services, said on September 5 it will invest up to Rs 70,000 crore in a 1 GW artificial intelligence data centre in Hyderabad.
The company has secured 264 acres for the campus. It disclosed the plan in a regulatory filing. HyperVault and its partners will fund the build.
Telangana Chief Minister A. Revanth Reddy announced the project the same day. He put the job estimate at 7,000. He asked HyperVault to open the site by June 2, 2028, the state’s formation day, about 21 months out.
The facility sits in Bharat Future City, a new zone on the Hyderabad outskirts. It is designed for frontier AI companies and hyperscalers. It will use high-density, liquid-cooled compute.
What is HyperVault building in Hyderabad?
HyperVault is building a purpose-built AI data centre of up to 1 gigawatt on 264 acres in Hyderabad. That is a very large single site. India’s entire data centre base is about 1.5 GW today.
The campus will come up in phases, tied to customer demand. It targets high-density GPU deployments. These run AI training and inference, the two heaviest compute jobs.
The design leans on liquid cooling and green energy. HyperVault has said the build will follow water-neutral principles. Water use is a real concern for large data centres in India.
A 1 MW data centre load can need up to 25.5 million litres of water a year for cooling, S&P Global has noted, citing Uptime Institute estimates. Scale that across a gigawatt and the number grows fast.
Is this the same as the TPG deal from 2025?
No. This is the first named site under HyperVault. The TPG deal was the funding structure behind it.
In November 2025, TCS brought in private equity firm TPG. Together they committed up to Rs 18,000 crore in equity for HyperVault. TPG agreed to put in up to Rs 8,820 crore.
TPG is expected to hold between 27.5% and 49% of HyperVault. TCS keeps board majority. The two split the equity in a 51:49 ratio.
The partners also aim to raise $4.5 billion to $5 billion in debt, TCS told Reuters at the time. HyperVault is the exclusive vehicle for all of TCS’s AI and non-AI data centre business in India.
| Item | TPG structure (Nov 2025) | Hyderabad campus (Sep 2026) |
|---|---|---|
| Headline figure | Rs 18,000 Cr equity | Up to Rs 70,000 Cr total |
| TPG share | Up to Rs 8,820 Cr | Partners included |
| Capacity | 1 GW-plus target, all India | Up to 1 GW, one site |
| Location | Not disclosed | Hyderabad, 264 acres |
| Jobs | Not stated | About 7,000 |
Why does India need this compute now?
India has a wide gap between the data it makes and the compute it owns. The country generates close to 20% of the world’s data. It holds only about 3% of global data centre capacity.
That gap forces Indian AI firms to rent compute abroad. Local, gigawatt-scale capacity changes that math. It is the practical reason behind the rush of announcements this year.
The market is set to grow. India’s data centre capacity could more than triple to 4.5 GW by 2030, real estate consultant Colliers estimates. Other industry estimates put the 2030 figure above 10 GW.
TCS is not alone here. Reliance, Adani, Google, NTT Data, Sify and CtrlS have all announced data centre plans. The Hyderabad campus is among the largest single sites in that group.
What happens next for HyperVault?
The next marker is groundbreaking, then a phased build toward the June 2028 target. The CM has assured HyperVault of the required sanctions.
TCS management flagged this ambition a year ago. On its September 2025 earnings call, TCS said a 1 GW build would need $6.5 billion to $7 billion. The Rs 70,000 crore figure sits inside that range.
Watch the phasing. A campus this size does not switch on at once. Each phase depends on signed hyperscaler and AI customers, so the pace of demand will set the pace of the build.
StartupFeed Insight
The Rs 70,000 crore number is a ceiling, not a cheque. It is the full build-out cost across years, funded by equity from TCS and TPG plus a large debt raise. The real signal for founders is location and control. HyperVault is the single vehicle for all TCS data centre work in India, and now it has a flagship site. For an Indian AI startup, domestic 1 GW capacity means less reliance on foreign cloud regions and, over time, room to negotiate on price. The bottleneck to watch is not money. It is power and water at Future City. Expect the first phase to energise well before the June 2028 headline date, with real customer capacity online in 2027.
by Harshvardhan Kothari, Technology and Policy Correspondent
What this means for you: If you build or train AI models, track HyperVault’s first-phase timeline, since domestic GPU capacity at this scale could cut your dependence on overseas cloud.
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