India’s technology industry moved beyond experimental AI this week, focusing instead on the physical infrastructure, data systems, and governance structures needed for large-scale AI deployment. Key developments included a major data center project in Telangana, increased enterprise AI investment, and AI agents being integrated into payment networks.
Tata Consultancy Services announces ₹70,000-crore AI data center project
HyperVault, a subsidiary of Tata Consultancy Services, along with its collaborators, intends to allocate up to ₹70,000 crore toward constructing a 1GW AI data center campus in Telangana. This initiative aims to accommodate high-density GPU processing demands for hyperscalers, reflecting the intensifying competition to establish India’s foundational AI infrastructure.
In addition, TCS unveiled an Industrial Autonomy & Engineering Lab in Pune, showcasing AI-driven manufacturing through robotics, digital twins, and industrial AI.
Corporate AI investment surges by 119%
Indian businesses boosted their AI spending by 119% over the last year, according to ServiceNow, making AI responsible for 16.6% of typical IT budgets and expected to grow to 21.3% by 2027. This marks a notable shift from early-stage experiments to more full, organization-wide AI implementations. It indicates that firms are beginning to view AI as essential to operations rather than experimental.
However, only 22% of organizations have established formal AI testing, auditing, or risk management procedures, revealing a growing disparity between investment and oversight.
Wipro highlights AI-driven productivity improvements
Wipro claims its AI programs have produced output equivalent to 20,000 full-time employees, with those gains redirected to other areas rather than eliminating positions. Over 100,000 staff members have undergone advanced AI training as part of the company’s evolution into a “human-AI operating model”.
Still, the primary hurdle lies in whether these efficiencies can be translated into increased profits and revenue.
Read Also: Industrial AI adoption gains momentum worldwide
AI agents begin operating within payment ecosystems
NPCI is creating frameworks to authenticate and authorize AI agents within the UPI network, potentially enabling machines to conduct transactions autonomously. While this could allow AI assistants to perform routine purchases independently, ensuring proper verification, liability handling, and security measures becomes vital as systems evolve from suggesting actions to executing them.
Swiggy has implemented Snowflake as a centralized data platform spanning its food delivery, Instamart, and Dineout services, utilizing Apache Iceberg for unified analytics. The firm reports a 90–96% improvement in previously sluggish data processes, with some queries reduced from two hours to just 15 minutes.
Expanding the groundwork for AI scalability
HCLTech has launched a 40,000-square-foot Advanced Semiconductor Lab in Bengaluru, featuring 25,000 square feet of premium cleanroom space, backed by an ₹185 crore investment. This facility enhances India’s capacity in post-silicon engineering, validation, testing, and failure analysis as the nation strives to cultivate a robust semiconductor industry.
India’s colocation data center capacity has expanded fivefold over five years, reaching approximately 2GW, with projections estimating it could climb to 10GW by 2031. AI workloads and data-localisation requirements are driving the expansion, but power, cooling, water and the availability of suitable infrastructure could become the next constraints.
Whatfix announced the appointment of co-founder Vara Kumar as CEO, effective immediately, following the passing of co-founder and former CEO Khadim Batti on September 1. Kumar, who helped launch Whatfix in 2014 and has led its product and research divisions, will now guide the company through its next stage of expansion.
Mahindra Finance is strengthening its collaboration with Indian AI startup Sarvam, deploying voice-based AI agents to manage over one crore interactions across sales, collections, and internal communications in 12 regional languages. This rollout represents a significant step in transitioning multilingual, sovereign AI solutions from pilot stages to widespread use in financial services.
Bennett, Coleman & Co. Ltd—the publisher behind The Times of India and The Economic Times—has joined forces with OpenAI to enhance the visibility of its journalism via ChatGPT. The deal emphasizes giving credit and maintaining access to authentic Indian reporting amid ongoing discussions about how generative AI and media companies can collaborate effectively.
