HCL, an Indian technology services company, announced plans to enter the AI datacenter market with a $36.5 million investment aimed at building facilities that could reach 50 megawatts of capacity.

The announcement was made in an earnings release for the first quarter, where revenue rose 3% year-over-year to $3.65 billion and net income increased 20% to $488 million. The company also reported 62% growth in its Advanced AI segment.

Chief executive C. Vijayakumar said HCL will focus on providing full-stack AI infrastructure rather than merely renting compute capacity. He noted that the investment aligns with the fastest-growing portion of enterprise spending on AI and that the firm will target Indian customers to support a sovereign AI ecosystem, offering secure AI and managed AI infrastructure.

HCL said it is in discussions with prospective clients to secure committed consumption from the start. The company reported $2.4 billion in new business for the quarter, a record amount. One deal involves a Fortune 250 semiconductor equipment manufacturer, where HCL will implement SAP and establish an enterprise backbone for AI-driven digital supply chain transformation. Another agreement, not included in the quarterly total, will involve a Europe-based Fortune Global 50 company; media reports have identified the client as Mercedes-Benz, which is said to have moved its AI services from Infosys.

HCL did not disclose locations, timelines, or energy sourcing details for the datacenter projects.