HCLTech to Invest ₹3,500 Crore in AI Data Centers

HCL Technologies announced plans to invest approximately ₹3,500 crore ($365 million) to establish and operate AI data centers in India with a potential capacity of 50 MW. Executed through new subsidiaries, this strategic pivot reverses a policy from nine months prior against investing in asset-heavy businesses. The move aims to address compute and data center bottlenecks and positions the firm as a full-stack AI technology solutions provider for government and enterprise clients.

The announcement coincided with the company's first-quarter results for the 2026-27 financial year. HCLTech reported a consolidated net profit of ₹4,624 crore to ₹4,626 crore, representing a 20.3% increase year-on-year. Quarterly revenue reached ₹34,579 crore ($3.62 billion to $3.65 billion). Growth was bolstered by an advanced AI portfolio that generated $171 million in revenue, a 62.1% year-on-year increase, though overall momentum was slightly hampered by weakness in the telecom, media, and entertainment sectors.

CEO C. Vijayakumar stated that the investment allows the company to provide a complete stack of power, storage, and compute services. HCLTech is the second Indian IT services firm to enter the capital-intensive data center market, following a $6.5 billion investment by Tata Consultancy Services. Additionally, the company declared an interim dividend of ₹12 per equity share.