Chennai's AI Powerhouse: Techno Digital Launches Massive AI-Ready Data Center
Powering India's AI revolution: Chennai facility spearheads Techno Digital's $1 billion investment to bridge the digital infrastructure gap.
August 28, 2025

Chennai's stature as a premier data center hub in India has been significantly bolstered with the inauguration of a new 36 MW AI-ready hyperscale facility by Techno Digital, the digital infrastructure arm of Techno Electric & Engineering Company Limited. Located in the SIPCOT IT Park at Siruseri, the data center represents a major step in expanding India's digital infrastructure to meet the intensive computational demands of artificial intelligence. The launch is a key part of Techno Digital's ambitious plan to invest $1 billion in building a network of hyperscale and edge data centers across the country, with the Chennai facility backed by a committed investment of $175 million. This development signals a strong private sector commitment to the "Digital India" vision and enhancing the nation's self-reliance in the rapidly evolving digital economy.
The new data center is engineered specifically to handle the high-density power and cooling requirements of AI and machine learning workloads. Spanning over 200,000 square feet, the facility has a hosting capacity of approximately 2,400 high-density racks.[1][2] A critical feature that makes it "AI-ready" is its ability to support flexible power densities ranging from 10 kilowatts to over 50 kilowatts per rack, accommodating the powerful servers and GPU clusters essential for AI model training and inference.[3][4] To ensure uninterrupted operations, the facility incorporates an on-site 110kV gas-insulated substation that receives dual power feeds from two independent substations via underground cables, enhancing reliability.[3][4] The power infrastructure is further reinforced by modern uninterruptible power supply (UPS) systems that have been tested and certified for compatibility with the latest generation of powerful AI servers.[3] Recognizing the environmental impact of such powerful facilities, Techno Digital has integrated advanced cooling solutions, including centrifugal water-cooled chillers and adiabatic cooling towers, which can reduce water usage by up to 75% compared to conventional methods and contribute to a lower power usage effectiveness (PUE).[3][5]
This facility marks the first major milestone in Techno Digital's broader strategy to establish 250 MW of data center capacity across India over the next five years.[6] The $1 billion investment plan underscores the company's belief in the immense growth potential of the Indian digital economy.[6][2] India currently leads the world in data consumption but has less than 3% of the global data center capacity, a disparity that presents a significant growth opportunity.[6] Beyond the Chennai hyperscale facility, Techno Digital is planning similar large-scale data centers in Noida and Kolkata, complemented by a network of edge data centers.[4][7] This integrated network aims to deliver low-latency connectivity and robust infrastructure to support the proliferation of 5G, cloud adoption, and AI applications nationwide.[6][7] Company executives have emphasized that this is not just an infrastructure launch but a strategic investment in building a future-ready and sustainable digital ecosystem for the country.[1][6]
The choice of Chennai for this state-of-the-art facility is highly strategic. The city is one of India's top three data center markets and is rapidly emerging as a leading hub in the Asia-Pacific region.[8] Its coastal location provides a significant advantage, hosting major undersea cable landing stations that connect India to the global internet backbone, ensuring low-latency international connectivity.[3][9][5] Furthermore, Chennai offers a favorable business environment, robust power infrastructure, and a deep pool of skilled technical talent, making it an attractive destination for digital infrastructure investment.[3][10] The Tamil Nadu state government has also been proactive, establishing a clear data center policy to attract investment and position itself as a trillion-dollar economy where digital infrastructure plays a pivotal role.[8] The city's data center market is projected to experience explosive growth, with capacity expected to more than double in the coming years, driven by increasing demand from cloud service providers, enterprises, and the burgeoning AI sector.[11][9]
In conclusion, the launch of Techno Digital's 36MW AI-ready data center is a significant development for Chennai and for India's broader digital ambitions. It directly addresses the critical need for high-performance computing infrastructure capable of supporting the next wave of technological innovation driven by artificial intelligence. The facility's advanced design, focus on sustainability, and the substantial investment behind it reflect the growing maturity of the Indian data center market. As part of a larger national strategy, this data center will play a crucial role in closing the gap between data consumption and infrastructure capacity, ultimately strengthening India's position as a global digital powerhouse and a key player in the AI revolution.[6][12]