New Delhi: Answering why Tamil Nadu “lost” a proposed ₹70,000-crore AI data centre investment to Telangana, Zoho founder Sridhar Vembu blamed the DMK for hurting the state’s image among investors.
Taking a jibe at the DMK, Vembu said its anti-North rhetoric and opposition to Hindi and the Centre had shaped how businesses and investors outside Tamil Nadu perceive the state.
“The DMK belief seemed to be ‘We will court investment from outside India; we do not need the other parts of India’. Well, the other parts of India do note that attitude,” Vembu said in a post on Tuesday.
What started the debate
The debate started soon after Tata Consultancy Services (TCS) announced that its subsidiary, HyperVault AI Data Center Ltd, had secured 264 acres in Hyderabad to develop a large-scale AI data centre campus with a capacity of up to 1 GW.
HyperVault and its partners are expected to invest up to ₹70,000 crore in the project.
The announcement prompted Tamil Nadu Industries Minister Dr TRB Rajaa to question on Monday why the state had missed out on the investment.
“When Andhra Pradesh landed the Google AI Data Centre due to the availability of a purpose-built subsea cable, some people here were shouting from the rooftops about how Tamil Nadu had supposedly ‘lost’ the investment. Strange silence from the same quarters now,” Rajaa wrote in his X post.
He pointed out that Telangana is landlocked and said that the state had secured the project without a subsea cable landing station.
“One must now ask WHY DID TN LOSE THIS?” Rajaa wrote.
Rajaa also said that the proposed ₹70,000-crore investment was potentially larger than the ₹67,542 crore represented by 97 MoUs announced at the Tamil Nadu government’s first major investment conclave.
He added that Tamil Nadu already had several advantages relevant to large data-centre projects, including subsea cable connectivity, renewable-energy capacity, engineering talent, a mature data-centre ecosystem and a strong electronics manufacturing base.
“And where are all those rooftop commentators now? Selective outrage cannot hide an investment opportunity lost… Can it?” Rajaa wrote.
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‘Why did TN lose?’
Vembu on Tuesday posted a detailed response, outlining what he said were multiple reasons for Tamil Nadu losing the investment.
“This requires a detailed response. First, these big investment decisions are not made in 3 months. They germinate over much longer periods with multiple layers of discussions and decisions,” he posted.
Responding to Rajaa, Vembu said the DMK’s rhetoric was another reason behind the state’s perceived loss of investor confidence, arguing that it affects Tamil Nadu’s image outside the state and among businesspeople across India.
He referred to remarks made against North Indians (“vadakkans”), migrant workers, Hindi and Sanatana Dharma.
“When DMK Ministers attacked ‘vadakkans’ (pejorative Tamil slang for North Indians), when they made fun of the migrant workers from the North here, when their Deputy Chief Minister openly talked about ‘eradicating’ Sanatana Dharma (even the Marxists of Kerala would not talk like this), it does not go unnoticed in the rest of Bharat,” he said.
Vembu also referred to the DMK’s approach towards the Centre. He said that by opposing issues such as NEET, Hindi and Navodaya schools, the party has projected Tamil Nadu as a state that seeks to oppose the Centre on several issues.
He contrasted this with Andhra Pradesh, Telangana, Kerala and Karnataka, which he described as more pragmatic in their dealings with the Centre and in their efforts to attract investment.
Edited by Maryam Hassan