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Tag: #TCS

TCS, TPG-Backed HyperVault to Develop 1GW AI Data Centre in Hyderabad – Full Details

In a landmark development for India’s digital infrastructure, Tata Consultancy Services (TCS) has announced that its data centre subsidiary, HyperVault, will build a massive 1 Gigawatt (GW) Artificial Intelligence (AI) data centre campus in Hyderabad. Backed by an estimated investment of up to ₹70,000 crore, this project is poised to become one of the largest and most advanced AI infrastructure facilities in the country.

Project Scope and Scale

HyperVault has secured 264 acres of land in Hyderabad to develop this state-of-the-art, purpose-built facility. The campus is specifically designed to cater to the demanding needs of frontier AI companies and hyperscalers.

Key features of the project include:

  • High-Density GPU Infrastructure: Engineered to support massive graphics processing unit (GPU) deployments required for complex AI training, inference, and advanced computing workloads.
  • Phased Development: The campus will be rolled out in strategic phases, allowing HyperVault to scale infrastructure in direct response to customer demand and rapidly evolving technology requirements.
  • Unmatched Capacity: At full build-out, the 1GW capacity will place the Hyderabad campus at the absolute pinnacle of India’s AI compute infrastructure landscape.

Strategic Alignment: “Infrastructure-to-Intelligence”

This mega-project is a cornerstone of TCS’s broader “Infrastructure-to-Intelligence” strategy. By combining AI-ready physical infrastructure with its deep expertise in cloud computing, engineering, enterprise transformation, and artificial intelligence, TCS is positioning itself as a holistic enabler of the global AI revolution.

K. Krithivasan, CEO and Managing Director of TCS, emphasized the strategic vision behind the investment:

“This project advances the company’s ‘Infrastructure-to-Intelligence’ strategy by combining AI-ready infrastructure with its cloud, engineering, enterprise transformation and AI capabilities.”

A Historic Milestone for Telangana and India

The announcement has been hailed as a transformative moment for the region. Telangana Chief Minister A. Revanth Reddy described the project as “historic” for both the state and the nation, underscoring Hyderabad’s evolution from a traditional IT hub to a global epicenter for next-generation compute infrastructure.

“This establishes that Hyderabad is now at the forefront of the global AI revolution with a strong focus on infrastructure. This decade is one of Artificial Intelligence. Access to AI models and compute is fast-becoming public infrastructure, and having this compute reside in Telangana gives us a distinct advantage,” stated CM Revanth Reddy.

Strategic Impact: Fueling India’s AI Ambitions

The TCS HyperVault campus addresses a critical bottleneck in the global AI race: the availability of scalable, reliable, and high-performance compute power. By localizing this capacity in Hyderabad, the project will:

  1. Attract Global Hyperscalers: Provide a world-class, sovereign infrastructure option for multinational tech giants and AI startups looking to scale operations in India.
  2. Boost the Local Economy: Generate thousands of direct and indirect jobs during the construction and operational phases, while stimulating the local tech ecosystem.
  3. Enhance Digital Sovereignty: Ensure that critical AI workloads and data can be processed securely within India’s borders, aligning with national digital infrastructure goals.

Looking Ahead

As the demand for AI compute continues to grow exponentially, the TCS HyperVault 1GW campus in Hyderabad represents a bold, future-proof investment. By bridging the gap between raw computational power and intelligent enterprise solutions, TCS is not just building a data centre; it is laying the foundational bedrock for India’s AI-driven future.

TCS Secures Premium Office Space in Hyderabad with Rs 4.37 Crore Monthly Lease

In a major move marking its continued expansion in Hyderabad, Tata Consultancy Services (TCS), one of the largest IT service companies globally, has secured a significant commercial lease agreement. The company has leased a state-of-the-art building in Hyderabad’s Nanakramguda area for a monthly rent of ₹4.37 crore. This strategic move comes as part of TCS’s ongoing efforts to strengthen its office presence in one of India’s leading technology hubs.

Prime Location, Long-Term Commitment

The property, Paradigm Rajapushpa, is a Grade-A commercial building developed by the Rajapushpa Group, spanning an impressive 10.2 lakh square feet (sq ft). This expansive office space is situated in the city’s vibrant Business District, home to a thriving ecosystem of top-tier companies such as Wipro, ICICI, Infosys, and Broadridge.

The deal is a 15-year lease agreement, set to commence on October 1, 2024, and TCS has agreed to a rent of ₹43 per sq ft for the leased space. As part of the agreement, the rent will undergo a 12% escalation every three years, ensuring that the space remains a high-value asset for both TCS and the property developers over time.

Additionally, TCS has paid a hefty upfront deposit of ₹26.2 crore, which covers approximately six months’ worth of rent. This substantial deposit underscores TCS’s commitment to long-term growth in the city and the broader region, reinforcing Hyderabad’s position as a critical hub for the IT industry.

Robust Office Space Market in Hyderabad

The office real estate market in Hyderabad continues to thrive despite the potential challenges posed by a significant supply pipeline. According to industry data, the city currently holds a substantial 28 million square feet (msf) of vacant office stock, the highest among the top seven cities in India. Despite this high vacancy rate, the demand for office space in Hyderabad remains robust.

In fact, the city recorded an impressive 2.7 million square feet (msf) of absorption in Q1 2025, marking a 17% year-on-year increase. This strong demand trend, even amid rising supply, indicates that Hyderabad continues to be a favored destination for businesses seeking scalable, state-of-the-art office spaces.

Changing Dynamics: Rent and Vacancy Rates

Interestingly, the average rent in areas like Nanakramguda has remained relatively stable, hovering around ₹70 per square foot in recent months. This figure contrasts with TCS’s lease rate of ₹43 per square foot, suggesting that TCS has secured a competitive deal in a market that’s seeing both rising rents and a significant number of available spaces.

While some may view the large amount of vacant stock in Hyderabad as a sign of oversupply, experts believe that it is a reflection of the city’s rapidly growing infrastructure and ongoing development. The upcoming supply of commercial office spaces is expected to fuel even more business activity, as companies continue to invest in top-tier locations.

Looking Ahead: The Future of Hyderabad’s Office Space Market

The Hyderabad office market is poised for a dynamic future. While the city holds the highest amount of vacant stock among the top Indian cities, it also has one of the strongest pipelines for upcoming commercial properties. The market’s robust absorption rate, coupled with increasing demand for modern workspaces, suggests that these vacant spaces will eventually be filled by companies eager to establish a presence in the city.

For TCS, the decision to lease a significant portion of Paradigm Rajapushpa for its operations aligns with its ongoing growth strategy. The company’s presence in the city reinforces Hyderabad’s position as a premier IT destination. As more companies follow suit and secure office spaces, Hyderabad will continue to evolve into a major player in the global business ecosystem.

Conclusion

TCS’s recent office lease in Hyderabad highlights both the continued growth of the city’s commercial real estate market and the strong demand for office space in one of India’s leading IT hubs. With a 15-year commitment and substantial upfront deposit, TCS has firmly established its presence in Hyderabad’s rapidly evolving office landscape. As the city continues to expand, both in terms of infrastructure and business activity, the demand for prime office spaces will only intensify, shaping the future of Hyderabad’s commercial real estate sector for years to come.