TCS reportedly in talks to advance AI data centres in India

First reported by Bloomberg, this move by TCS could signal a commitment by the company to reshape its business model to capitalise further on AI technologies.

The company is moving quickly to build out AI infrastructure across India, given the significant opportunity to deploy the technology in a country where technology development is fast-moving. With India likely to exceed 10 gigawatts of AI data centre capacity by 2030, but only five or six gigawatts announced so far, TCS CEO K Krithivasan told Bloomberg that the company wants to help close the gap.

“We are having discussions with multiple other hyperscalers,” he said during an interview at the company’s offices in London. “We are in advanced discussion with multiple players.”

He added: “We are very, very bullish. There is going to be a lot of latent demand or unmet demand by 2030, so there is going to be a lot of investment required.”

His comments come shortly after the company partnered with OpenAI to develop local AI-ready data centre capacity designed for data residency, security and long-term domestic capability – marking an important shift in the company’s strategy. OpenAI became the first customer of Tata Consultancy Services’ (TCS) HyperVault data centre business, which will commence with 100MW of capacity and with potential to scale to one gigawatt over time.

Krithivasan said to Bloomberg that TCS will help pay for the structure itself, including racks, connectivity, power and cooling. It should cost approximately US$7-$8 billion.

“We are looking at a fairly attractive IRR,” he said, adding that TCS hopes to distinguish itself with AI infrastructure.

“To our customers, we will be able to offer end-to-end services,” he said. “We can offer infrastructure, we can offer model training, we can offer agents, we can offer application intelligence. The entire stack, we can offer to our customers.”

As an IT services company, TCS’s interest in AI suggests the company is eager to reinvent itself and redefine the services it’s able to offer its customers. This is particularly the case as corporate clients are shifting their IT spending away from TCS’s more traditional services.

“Clients are cutting budgets because they’re investing in AI,” Bloomberg Intelligence analyst Anurag Rana said in Bloomberg’s report.

For the CEO, AI is a critical opportunity for TCS to advise its clients on how to adopt new technology.

“Will the whole value chain be replaced by an LLM? It’s a far-fetched thing. That’s not going to happen,” he said during the interview. “Staying close to your customers and staying close to your employees are the two things that cannot be overemphasised.”

This latest news comes a few weeks after TCS job cuts continued into 2026, after the company reduced its workforce by 11,151 employees last year. The company stated the restructuring is aimed at becoming “future-ready,” enhancing productivity and increasing its focus on AI.

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