TCS Exploring Partnerships With Global Tech Firms For AI Data Centres In India

Tata Consultancy Services (TCS) is in advanced discussions with several hyperscale technology firms to build additional artificial intelligence data centres in India. The move comes shortly after the company announced a partnership with OpenAI to develop artificial intelligence (AI)-focused data centre infrastructure in the country.

Chief Executive Officer K Krithivasan said the company is actively negotiating with multiple global cloud and technology players. This reflects TCS’s growing focus on AI infrastructure as a long-term growth engine.

The company believes India could require around 10 gigawatts of AI data centre capacity by 2030, while only about 5–6 gigawatts have been announced so far. TCS is positioning itself to help bridge that gap as demand for AI computing infrastructure rises.

How Will The Data Centre Investment Work?

The AI data centre project signifies a transformation of the TCS business model. Historically, the firm has made money mainly through offering technology consulting and outsourcing services to international businesses. With AI, it is now exploring participation in the infrastructure layer as well.

Under its announced collaboration with OpenAI, TCS plans to help build large-scale AI data centres with capacities ranging from 100 megawatts to 1 gigawatt. A facility of that scale can cost between $35 billion and $50 billion, depending on computing power, infrastructure and energy requirements.

TCS will not bear the full cost of the project. Instead, it plans to contribute toward the infrastructure portion, including racks, connectivity, power systems and cooling. This infrastructure component alone is estimated to cost around $7–8 billion.

TCS is expected to invest about $1 billion, with a similar amount coming from TPG Inc. The remaining capital would be raised through debt financing. Krithivasan reported that the investment is likely to earn the company good internal rates of return and enhance the strategic positioning of TCS within the AI environment.

What Opportunities Does AI Infrastructure Create?

By investing in data centres, TCS aims to create a vertically integrated AI services offering. The company wants to use computing infrastructure with AI development capabilities and consulting services.

This may enable TCS to provide customers with a complete stack of AI solutions, and these include the following:

• Access to high-performance computing infrastructure.

• AI model training and deployment.

• Development of AI agents and automation tools.

• Integration of AI into enterprise applications.

• End-to-end management of AI-powered business systems.

The company employs around 600,000 people worldwide and remains one of India’s largest private-sector employers.

TCS hired roughly 85,000 employees in 2025 and expects hiring to stay at a similar level. About 20,000 job offers have already been rolled out for 2026. By participating in infrastructure development and active hiring, TCS hopes to secure reliable access to these resources.

What Other Challenges Is TCS Facing?

TCS has experienced several headwinds over the past few years despite being one of the largest companies in the world that offers information technology (IT) services. The increase in competition, stricter visa laws in major markets and fears of AI takeover have taken a toll on the mood of investors.

This year, the TCS shares have fallen by approximately 20% and approximately 23% since Krithivasan assumed the CEO position in June 2023.

Meanwhile, corporate client technology spending has been sluggish, with corporations reevaluating budgets and shifting investment into AI projects.

Even with these pressures, TCS still heavily depends on its biggest markets. Around half of the company’s revenue in 2025 comes from the United States, while the United Kingdom remains its second-largest market.

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What Does This Mean For Investors?

To investors, the AI data centre plan is an indication of a major change in the long-term business model of TCS. Instead of remaining solely a consulting and outsourcing firm, the company is attempting to capture value across the AI technology stack. If successful, the move could open new revenue streams through infrastructure services, AI platforms and higher-value consulting engagements.

However, the strategy also introduces a more capital-intensive element to TCS’s business. The returns will be based on whether AI infrastructure investments will be converted into long-term contracts and sustained enterprise demand.

Sources:

Bloomberg

CNBC TV18