India’s tech services giant HCL is getting into the AI datacenter business

off prem

Starting small with $37m and maybe 50MW but reckons full-stack service plan can succeed

Indian tech services leader HCL has announced its entry into the AI datacenter sector, allocating ₹3,500 crore ($36.5 million) for infrastructure development. This move aligns with its strategy to capitalize on “AI-native and AI-amplified opportunities,” which the CEO described as the fastest-growing segment of enterprise spending.

The company plans to develop facilities with potential to scale up to 50MW of computing capacity. By integrating its software expertise with datacenter operations, HCL aims to offer “full-stack” solutions tailored for client-specific AI workloads. CEO C. Vijayakumar emphasized that owning the infrastructure—rather than merely renting AI services—positions HCL to extract greater value from this trend.

Focusing on Indian enterprises, the initiative seeks to support the nation’s emerging sovereign AI ecosystem. HCL stated it will provide “secure AI, managed AI infrastructure, and sovereign cloud” solutions, targeting India’s rapid growth as one of the largest economies. The CEO confirmed active client discussions to ensure “committed consumption” from day one of partnerships.

In Q1 2023, HCL secured $2.4 billion in new business, a record high. One deal involved collaborating with a Fortune 250 semiconductor equipment OEM to enhance AI-driven transformation in semiconductor engineering. Another partnership, reported by Indian media, may involve Mercedes-Benz shifting workflows from Infosys to HCL, though this remains unconfirmed.

Challenges remain, including energy sourcing for datacenters. HCL has explored locations in renewable-energy-rich regions like Bhutan, reflecting its commitment to sustainable operations.

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