HCLTech Plans Its First India Data Centre In Bhubaneswar: Why Is Odisha Emerging As A Digital Infrastructure Hub?

HCLTech’s proposed ₹730 crore AI-optimised data centre and Global Development Centre in Bhubaneswar could become one of Odisha’s biggest technology investments in recent years. The project is expected to create around 6,000 skilled jobs and may become HCLTech’s first owned data centre in India, a notable shift for a company long associated with IT services, cloud operations and infrastructure management.

The timing is important. India’s demand for AI computing, sovereign cloud capacity and locally hosted data is rising quickly. HCLTech has already announced an investment of up to ₹3,500 crore in AI data centres, with the network capable of scaling to 50 MW. Bhubaneswar now appears set to receive an early part of that expansion.

What Has HCLTech Proposed In Bhubaneswar?

The plan combines an AI-ready data centre with a Global Development Centre, rather than treating them as two separate investments. The data centre would handle demanding workloads linked to artificial intelligence, cloud computing and cybersecurity. The development centre would support software engineering, enterprise technology and services for global clients.

The integrated campus is likely to come up in Info Valley-II. Odisha has approved the proposal, while an MoU signing is scheduled for July 24, 2026, in the presence of Chief Minister Mohan Charan Majhi and HCLTech Chairperson Roshni Nadar Malhotra. The CMO Odisha official X post confirmed the planned agreement for an AI Data Centre Park and Global Development Centre.

HCLTech’s move follows its July 13 full-stack AI announcement, which linked its data-centre entry to rising demand from businesses and governments. The company estimates India’s data-centre capacity could rise from about 1.8 GW to 5–7 GW by 2030, with AI facilities taking a large share.

Why Is Odisha Attracting Major Data Centre Projects?

Odisha is no longer relying only on lower property costs to attract technology companies. It has begun assembling the policy, land, power support and public digital systems that large data centres require.

  • The Odisha Data Centre Policy 2022 offers a 20% capital subsidy, capped at ₹25 crore per unit.
  • Eligible projects can receive power-bill support, electricity-duty exemptions and renewable-energy access through open systems.
  • Internet bandwidth costs can receive 25% reimbursement for three years, subject to the policy ceiling.
  • Info Valley offers a planned technology location near Bhubaneswar’s existing IT, education and administrative base.
  • Single-window approvals and customised packages are available for strategic or mega projects.

These incentives reduce several early costs that often decide where a data centre gets built. Power is especially important because AI servers consume far more electricity than ordinary office technology. Odisha’s policy also reimburses transmission and wheeling charges for electricity drawn from captive renewable projects within the state.

How Is Bhubaneswar Building A Wider Digital Infrastructure Cluster?

HCLTech is entering a city where several data-centre projects are already moving through different stages. The Reserve Bank of India’s ₹169 crore data centre and enterprise computing facility at Info Valley is reported to be nearing completion. Adani Group has proposed an ₹800 crore hyperscale data centre, while the Odisha government has approved State Data Centre 2.0 at ₹266.48 crore.

The state-backed facility is planned as a Tier-III-compliant centre with stronger cloud capacity, cybersecurity and disaster-recovery systems. Together, the Adani and state projects represent ₹1,066.48 crore in fresh investment. The wider Bhubaneswar data-centre pipeline shows that HCLTech is not arriving as an isolated investor.

That cluster effect could pull in fibre providers, cybersecurity firms, cooling specialists, cloud partners, equipment vendors and technical maintenance companies. It may also give local engineering graduates more options beyond traditional software support roles.

What Could Slow Odisha’s Rise As A Data Centre Hub?

Announcements alone will not make Odisha a leading digital infrastructure destination. Data centres need uninterrupted power, several independent fibre routes, water-efficient cooling systems, strict physical security and dependable disaster planning. Because Odisha is exposed to cyclones and other natural hazards, resilient power and network design cannot be treated as optional.

Execution will decide the outcome. The HCLTech MoU must move into land allotment, construction timelines, capacity details and confirmed hiring. Odisha must also prevent incentives from becoming the only attraction. Operators will stay when network latency, energy reliability, specialised talent and vendor support remain competitive.

Still, the direction is visible. HCLTech’s Bhubaneswar plan links AI infrastructure with thousands of technology jobs, while other public and private facilities are forming a broader cluster. Odisha is not yet competing with Mumbai, Chennai or Hyderabad at full scale. It is, however, building a credible eastern India alternative.

Frequently Asked Questions

Is HCLTech’s Bhubaneswar facility confirmed?
The proposal is approved, with an MoU scheduled for July 24, 2026, before implementation begins.

How much will HCLTech invest in Bhubaneswar?
HCLTech is expected to invest around ₹730 crore in the data centre and development campus.

How many jobs could the project create?
The proposed project is expected to create about 6,000 skilled technology and support jobs locally.

Where could the HCLTech campus be built?
The data centre and development campus is likely to come up within Info Valley-II, Bhubaneswar.

Why are data centres growing rapidly in India?
AI workloads, cloud adoption, data localisation and digital services are pushing demand for computing capacity.

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