Adani Group's ₹1 Trillion AI Data Centre Proposal in Odisha: Why Cuttack Is Being Considered

Synopsis

The Adani Group has approached the Odisha government with a proposal to invest ₹1 trillion in an AI-focused data centre, with around 250 acres of land being sought for the project. Cuttack is understood to be one of the locations being considered, although the final site has not been selected. The proposal is still undergoing government evaluation and will need to clear infrastructure, land, power, water and policy-related requirements before moving towards formal approval.

Adani Group's ₹1 Trillion AI Data Centre Proposal in Odisha: Cuttack Is Being Considered

The Adani Group is looking to expand its AI infrastructure footprint in eastern India with a proposed ₹1 trillion data centre project in Odisha. The company has sought approximately 250 acres from the state government, making the proposal one of the largest technology infrastructure investments currently under consideration in the state.

Cuttack has emerged as a tentative location for the facility, according to officials familiar with the proposal. However, it would be premature to treat Cuttack as the confirmed site. The Odisha government is still assessing whether the proposed location can meet the requirements of a project of this scale, including land availability, electricity, water and connectivity.

The proposal is also significant because it comes as the Adani Group is dramatically increasing its ambitions in India's AI infrastructure market. In February 2026, the group announced a plan to invest $100 billion by 2035 in renewable-energy-powered, AI-ready data centres. The broader programme is designed to increase Adani's data centre capacity from its existing 2 GW platform towards 5 GW.

The Odisha project, if approved, would be a standalone investment rather than a joint venture. It is also separate from an earlier ₹800 crore agreement involving Adani for a hyperscale data centre in the state.

What is Adani proposing in Odisha?

The proposal centres on a large AI data centre that would require a substantial land parcel and supporting infrastructure. While the final technical capacity of the proposed Odisha facility has not been publicly established, its ₹1 trillion investment size puts it in the same broad category as the large AI infrastructure projects now being planned by major Indian and global technology companies.

The important distinction is that this is currently a proposal, not a project that has received final state clearance.

Why the approval process is important

A conventional commercial facility and an AI data centre have very different infrastructure requirements. AI workloads rely on large quantities of computing equipment, which in turn require dependable power, cooling systems, network connectivity and physical infrastructure.

For this reason, the Odisha government is examining the proposal across several areas before deciding whether it can proceed. Land availability is one part of the assessment, while electricity supply, water availability and connectivity are equally important for a facility operating at hyperscale.

The incentives sought by the company will also need to be worked out. Once the proposal meets the required conditions and the incentive structure is finalised, it is expected to move to Odisha's high-level clearance mechanism headed by the chief minister for consideration and statutory approvals.

This means the ₹1 trillion figure should currently be viewed as the value of the proposed investment, rather than money already committed to construction.

A much bigger AI infrastructure strategy

The Odisha proposal fits into a much broader strategy being pursued by the Adani Group.

In February, Adani announced a $100 billion direct investment programme through 2035 aimed at developing renewable-energy-powered, hyperscale data centres designed for AI workloads. The group said the initiative could generate another $150 billion of investment across areas such as servers, electrical infrastructure and sovereign cloud services, potentially creating a $250 billion AI infrastructure ecosystem over the decade.

The strategy is built around combining two infrastructure-intensive businesses: energy generation and computing.

That is particularly relevant for AI data centres because increasingly powerful GPUs and other AI processors require significantly more electricity than traditional computing infrastructure. Adani's stated model is to combine renewable generation, transmission infrastructure and large-scale computing facilities rather than treating data centres simply as real estate projects.

Adani has said its wider data centre platform is expected to expand from around 2 GW to 5 GW.

Where Adani already has data centre infrastructure

The group already has an operating presence in India's data centre market through AdaniConneX, its 50:50 joint venture with EdgeConneX.

The Chennai facility was the first major campus to become operational. AdaniConneX currently lists data centre developments across Chennai, Hyderabad, Navi Mumbai, Noida and Pune, with Vizag also part of its broader national footprint.

The Chennai 1 campus began operations in 2022 with an initial 17 MW IT load and a planned expansion to 33 MW. It was developed as a hyperscale facility and designed to use up to 100% renewable energy.

Adani's current portfolio shows how the company's data centre strategy has evolved from individual facilities towards a much larger national platform.

Odisha is trying to build a digital infrastructure hub

The Adani data center proposal arrives as Odisha attempts to diversify its investment base beyond its traditional strengths in mining, metals and heavy industry.

The state has been pursuing investments in sectors such as electronics, semiconductors, IT, data centres and other digital infrastructure. The proposed Adani project would be considerably larger than many of the data centre investments currently being developed in the state.

Odisha already has several data centre-related projects in the pipeline. The Reserve Bank of India's facility is nearing completion with an investment of around ₹169 crore, while the state government's own next-generation data centre is being developed at an estimated cost of ₹266.48 crore. Adani also has an earlier ₹800 crore MoU for a hyperscale data centre.

Zoho is developing a data centre in Khordha with an investment of around ₹306 crore, while HCLTech has announced plans for an AI-optimised data centre as part of the proposed Sovereign AI Park, with a planned outlay of ₹14,257 crore.

Against that backdrop, a ₹1 trillion Adani proposal would be in a completely different league in terms of scale.

India's AI data centre race is getting bigger

The Odisha proposal is not happening in isolation. Some of the country's biggest corporate groups and global technology companies are committing enormous sums to AI infrastructure.

Google announced a roughly $15 billion investment in an AI hub in Visakhapatnam, Andhra Pradesh, covering data centre infrastructure, energy and connectivity. Google has described the project as its largest investment in India to date and said the hub would deploy gigawatt-scale computing capacity.

Reliance Industries has also proposed a gigascale AI data centre in Andhra Pradesh, with an investment of around ₹1.08 trillion. The state has already allotted 856 acres in Vizianagaram district for the project, according to the latest reporting.

The comparison also highlights the changing nature of India's data centre industry. The competition is no longer only about providing storage and cloud infrastructure. Companies are now looking to secure the land, electricity, renewable power, connectivity and computing capacity needed to support the next generation of AI services.

Why power could be the biggest factor

For AI data centres, finding a suitable plot of land is only the beginning.

High-performance computing facilities can require enormous amounts of electricity, particularly as operators deploy increasingly dense GPU clusters. Cooling is another major consideration because AI servers generate substantial heat while operating at high utilisation.

This gives Adani a potential advantage because the group already has businesses spanning renewable energy, power generation, transmission and infrastructure. Its AI strategy explicitly links energy generation with data centre development.

The Odisha project will therefore need more than a large piece of land. Its eventual feasibility will depend on whether the surrounding infrastructure can support the continuous power and connectivity requirements of an AI facility at this scale.

What needs to happen before construction can begin?

The proposal is still at the evaluation stage. Several decisions therefore remain outstanding.

The Odisha government needs to determine whether suitable land can be made available and whether the proposed location can support the project's infrastructure requirements. Power availability, water resources and connectivity will also need to be assessed.

The state and Adani will additionally have to settle the incentives associated with the investment. Only after the relevant conditions have been addressed can the proposal move towards the high-level approval process.

As a result, there is currently no confirmed construction timeline or final project site that can be treated as official.

What could the project mean for Odisha?

If the proposal eventually receives approval and reaches the construction stage, its impact could extend beyond the data centre itself.

A project of this size could attract supporting technology, networking, power and infrastructure businesses to the region. It could also strengthen demand for engineering, data centre operations, electrical infrastructure and other specialised technical skills.

More importantly, the project could help Odisha position itself as an eastern India destination for digital infrastructure at a time when data centre activity has been concentrated around established markets such as Mumbai, Chennai, Hyderabad and the National Capital Region.

But the size of the proposed investment should not be confused with its eventual economic impact. The number of jobs, actual capital deployed, power consumption, local procurement and supporting investments will only become clearer if the project moves from proposal to execution.

For now, the immediate question is whether the Odisha government and Adani can agree on the location, infrastructure requirements and incentives needed to take the project forward.

About Adani Group's data centre business

The Adani Group has been building its data centre presence through AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX. The platform was created to develop hyperscale and edge data centre infrastructure across India.

AdaniConneX's current portfolio includes facilities in Chennai, Hyderabad, Noida, Pune and Navi Mumbai, while the group's broader AI infrastructure strategy also includes large-scale partnerships with technology companies.

The group's February 2026 announcement marked a significant escalation in its ambitions, with a stated $100 billion investment programme for renewable-powered AI-ready data centres through 2035.

The proposed Odisha facility would therefore represent another potential piece of a much larger national AI infrastructure network rather than an isolated data centre investment.

Frequently Asked Questions

What is Adani Group's proposed investment in Odisha?

Adani Group has proposed investing ₹1 trillion in an AI-focused data centre in Odisha. The company is seeking approximately 250 acres of land for the project.

Is Cuttack confirmed as the location?

No. Cuttack has emerged as a tentative location, but the site has not been finalised. The Odisha government is still evaluating the proposal and its infrastructure requirements.

Has Odisha approved Adani's ₹1 trillion AI data centre?

Not yet. The proposal remains under government evaluation. Land, power, water, connectivity and the incentives sought by Adani are among the issues being examined before the project can move through the formal approval process.

How much land has Adani sought for the project?

The group has sought approximately 250 acres of land from the Odisha government.

Is this the same as Adani's earlier Odisha data centre project?

No. The proposed ₹1 trillion AI data centre is separate from the earlier ₹800 crore MoU for a hyperscale data centre in Odisha. The new proposal is being considered as a standalone investment.

What is Adani's larger AI data centre investment plan?

Adani Group announced in February 2026 that it plans to invest $100 billion by 2035 in renewable-energy-powered, AI-ready data centres. The group said the programme would expand its data centre platform towards 5 GW of capacity.

Where does Adani already operate data centres?

AdaniConneX operates its Chennai data centre and has a broader portfolio of facilities and developments across markets including Hyderabad, Noida, Pune and Navi Mumbai.

How does the Odisha proposal compare with other large AI data centres in India?

The proposed ₹1 trillion Adani project is broadly comparable in investment size with Reliance's ₹1.08 trillion AI data centre proposal in Andhra Pradesh. Google has separately committed around $15 billion to its AI hub in Visakhapatnam, which includes gigawatt-scale data centre infrastructure.

When will Adani's Odisha AI data centre be built?

There is currently no confirmed construction timeline. The proposal is still being evaluated, and the final location, incentives and statutory approvals have not yet been completed.


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