TCS CEO says in 'advanced' talks for more India data centers

TCS CEO says in 'advanced' talks for more India data centers

Tata Consultancy Services (TCS) is in “advanced” discussions to expand its AI data center footprint in India, with CEO K Krithivasan emphasizing the country’s growing demand for AI infrastructure. The company’s HyperVault initiative, a dedicated AI data center business, has secured a $1 billion investment from TPG, a global alternative asset manager, to accelerate its GW-scale infrastructure development. This partnership, structured through a mix of equity and debt, aims to build AI-ready data centers with capacity exceeding 1 gigawatt (GW), aligning with India’s projected data center market growth from 1.5 GW today to over 10 GW by 2030.

HyperVault’s infrastructure will feature liquid-cooled, high-density facilities optimized for hyperscalers and AI enterprises, with TCS collaborating closely to design and deploy tailored solutions. The CEO noted that India’s data center sector has attracted $94 billion in investments since 2019, driven by surging AI adoption and cloud expansion. TCS is also partnering with Advanced Micro Devices to integrate AMD’s Helios rack-scale AI architecture into its data center plans, aiming to enhance computational efficiency for large-scale AI workloads.

Krithivasan acknowledged short-term revenue risks from AI-driven automation but emphasized the long-term strategic value of adopting AI tools to improve client efficiency and unlock new projects. “We are not afraid of AI cannibalizing revenue,” he stated. TCS remains focused on expanding its AI ecosystem, with plans to pursue acquisitions and deepen partnerships to solidify its position in the global AI services market.