TCS in Advanced Talks With Hyperscalers to Build More AI Data Centres in India

Tata Consultancy Services (TCS) is in advanced discussions with multiple hyperscalers to build additional AI data centres in India, CEO K Krithivasan told Bloomberg in an interview.

Krithivasan said the company is actively negotiating with several global technology players after recently signing an agreement with OpenAI to develop AI data centre infrastructure in India.

“We are having discussions with multiple other hyperscalers. We are in advanced discussion with multiple players,” he said.

The push comes as TCS seeks to expand its role in building India’s AI infrastructure. Krithivasan said the country could require around 10 gigawatts of AI data centre capacity by 2030, while only 5 to 6 gigawatts have been announced so far, leaving a significant supply gap.

“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,” he said.

TCS has already announced plans to partner with OpenAI to build AI data centre facilities ranging from 100 megawatts to as much as 1 gigawatt in capacity. Large scale AI data centres of 1 gigawatt typically require investments of $35 billion to $50 billion, though TCS will not fully finance the infrastructure.

Instead, the company plans to fund portions of the physical infrastructure including racks, connectivity, power systems and cooling. The total cost for this part of the project is expected to be $7 billion to $8 billion.

TCS plans to invest $1 billion, while private equity firm TPG will contribute another $1 billion, with the remaining capital expected to come through debt financing.

Krithivasan said the strategy would allow TCS to participate in the AI infrastructure layer while also offering end to end AI services built on top of these facilities.