Why are HCLTech shares rising even as the stock market trades in the red today?
While Dalal Street was awash in red on Friday, HCLTech stood out by trading in the green. The IT major's shares gained nearly 2% after
While Dalal Street was awash in red on Friday, HCLTech stood out by trading in the green. The IT major's shares gained nearly 2% after it announced a $1.48 billion investment to build its first AI data centre in Odisha, signalling a stronger push into the fast-growing artificial intelligence space, reported Reuters. At the time of writing, HCL Technologies shares were trading at Rs 1,268.60, up 1.92%. Read Full Story $1.48 BILLION INVESTMENT IN AI DATA CENTRE HCLTech said it will invest $1.48 billion to build its first AI data centre in Bhubaneswar, Odisha, in partnership with homegrown start-up Sarvam AI.
The company said the investment will also receive financial support from the Odisha government. The project will combine HCLTech's full-stack AI capabilities with Sarvam AI's foundation models to develop AI applications for both government organisations and private businesses. NEW TECHNOLOGY HUB TO CREATE 5,000 JOBS Along with the AI data centre, HCLTech also announced plans to open a new technology centre in Bhubaneswar. The facility will have the capacity to accommodate 5,000 employees and is expected to begin operations by 2028. The latest announcement comes just weeks after HCLTech acquired a 10.5% stake in Sarvam AI for $150 million, further strengthening its presence in the AI ecosystem.
Speaking during the company's post-earnings press conference last week, HCLTech CEO C Vijayakumar said the company aims to provide end-to-end AI services, with data centres forming an important part of that strategy. According to him, HCLTech wants to create value across the entire AI chain—from data centres and graphics processing units (GPUs) to AI models and applications. IT COMPANIES STEP UP AI INVESTMENTS HCLTech is among several Indian IT companies expanding into AI infrastructure as demand for AI and cloud computing continues to grow. The AI boom has led to increased investment in data centres, with India emerging as an attractive market because of its large internet user base and relatively lower power and operating costs.
Last November, larger rival Tata Consultancy Services (TCS) also announced plans to invest $2 billion in AI data centres in partnership with private equity firm TPG. Ends
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