Tata Consultancy Services (TCS) is launching a wholly owned subsidiary to develop top-tier AI infrastructure, beginning with a massive 1 GW AI data centre in India. The project, estimated to cost $6.5 billion, equals the country’s current total data centre capacity. CEO Krithi Krithivasan stated during an investor call that the facility will be built in phases over the next 5–7 years. As per TCS estimates, every 150 MW of AI compute will need a $1 billion investment. The funding will come through a mix of equity and debt, with financial partners on board.
The data centre will cater to AI-focused startups, deeptech firms, hyperscalers, and government agencies. It will mostly serve as a backup or passive infrastructure for active AI operations. This marks a strategic shift for TCS—from cost-efficient outsourcing to heavy investments in AI compute—positioning the company to provide full-scale AI solutions, including LLM training and secure, India-based AI cloud services.
TCS is also forming an AI and Services Transformation unit, led by senior executive Amit Kapur, reporting to COO Aarthi Subramanian. This initiative aligns with the broader Tata Group plan to create an end-to-end digital and AI ecosystem in India.
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