HCLTech to Invest Rs 3,500 Crore in AI Data Centres, Cuts 3,300 Jobs

By: Harsh Vardhan

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Updated on: 14-Jul-2026 03:00 PM

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HCLTech, one of India's leading IT companies, has announced a major investment of up to Rs 3,500 crore in AI data centres. The company revealed this plan during its latest quarterly earnings conference, where it also disclosed a reduction of nearly 3,300 jobs in the past three months.

Key Highlights

• HCLTech announces up to Rs 3,500 crore investment in AI data centres.
• Company cuts 3,292 jobs, reducing headcount to 223,889 as of June 30.
• HCLTech aims for 50 MW AI data centre capacity by 2030.
• Invested $150 million in Indian AI startup Sarvam AI.
• TCS plans $6 billion investment in 1 GW data centre capacity.

HCLTech's AI Data Centre Expansion

CEO and Managing Director C Vijayakumar stated that HCLTech will invest up to Rs 3,500 crore to establish AI data centres. The company aims to scale up to 50 megawatts (MW) of capacity. Vijayakumar explained that demand for AI data centres is expected to nearly triple by 2030. These centres are crucial for running large AI models, such as ChatGPT and Gemini, which operate via cloud infrastructure.

The CEO highlighted the growing need for sovereign data as government and enterprise workloads increase. HCLTech is already in discussions with potential clients and is close to finalizing a deal with a customer. Vijayakumar noted that the megawatt capacity is only an anchor, while the main value lies in delivering full-stack AI services. These services include data centres, GPUs, AI models, and enterprise applications.

Recent Workforce Reductions

In the same quarter as the investment announcement, HCLTech reduced its workforce by 3,292 employees. The company’s total headcount dropped to 223,889 as of June 30, down from 227,181 at the end of March. This move reflects ongoing changes in the IT sector as companies adapt to the rise of AI technologies.

Strategic Partnerships and Investments

​HCLTech has also invested $150 million in Sarvam AI, an Indian AI startup. This investment supports the company’s broader strategy in artificial intelligence. Additionally, HCLTech has partnered with OpenAI to use ChatGPT Enterprise internally, strengthening its AI capabilities.

Vijayakumar emphasized that AI has fundamentally changed the economics of computing. He said that the data centre is the foundation for delivering comprehensive AI solutions, from GPUs and models to enterprise applications. This approach opens a new growth area for HCLTech.

Industry Context and Competitor Moves

The Indian IT sector faces uncertainty as AI tools become more widespread. Some critics believe this could challenge traditional IT services. However, companies like HCLTech and Tata Consultancy Services (TCS) are investing in AI to create new growth opportunities. In October last year, TCS announced plans to invest about $6 billion to build 1 gigawatt (GW) of data centre capacity over the next five to seven years.

These moves indicate a shift in strategy among major Indian IT firms as they respond to changing technology demands and market conditions.