Wedoany.com Report on Mar 6th, Tata Consultancy Services (TCS) recently reached an agreement with OpenAI to build artificial intelligence data centers in India and is currently in advanced negotiations with other tech giants to further expand its AI infrastructure footprint in the country. CEO K. Krithivasan stated at the London office, "We are in discussions with several other hyperscalers, and these talks are in advanced stages." He predicts that by 2030, India may require approximately 10 gigawatts of AI data center capacity, while currently announced capacity is only 5 to 6 gigawatts. TCS is committed to bridging this gap.
Krithivasan pointed out that AI infrastructure is a crucial transformational direction for TCS's business model. The company announced at the India AI Impact Summit in February that it would collaborate with OpenAI to build facilities ranging from 100 megawatts to 1 gigawatt. TCS will bear structure-related costs, such as racks and cooling, with an estimated investment of around $1 billion. Partner TPG Inc. will also provide matching funds, with the remainder financed through debt. Krithivasan said, "We are looking at fairly attractive internal rates of return." He emphasized that TCS's goal is to provide end-to-end services to clients, encompassing infrastructure, model training, and application intelligence, through AI infrastructure, advanced models, and chip access.
TCS's AI data center plan aims to seize the opportunity for technology deployment in India, the world's most populous country. Krithivasan stated, "We are very, very optimistic. By 2030, there will be a lot of potential demand, requiring significant investment." Despite facing increased competition and stock price pressure, he views AI as a new opportunity that can help enterprise clients adopt technology, similar to past experiences in the cloud computing domain. He does not believe large language models will completely replace enterprise system needs, saying, "Will the entire value chain be replaced by LLMs? That's a far-fetched idea. It's not going to happen."
To adapt to AI demands, TCS's hiring strategy may be adjusted. The company employs about 600,000 people and is a major employer of university graduates. In 2025, it hired approximately 85,000 new employees and plans to maintain the current pace. Krithivasan noted, "We may need people with different skill sets, such as those with more creativity or business backgrounds." On the business front, he countered views about the impact of protectionism, pointing out that TCS's reliance on U.S. H-1B visas is limited, as it hires far more people in the U.S. than it dispatches from India. In 2025, half of its revenue came from the U.S., with the UK being its second-largest market.
Krithivasan also addressed cybersecurity concerns. Following attacks on TCS clients, the company's investigation confirmed its network was not compromised. Having served as CEO for nearly three years, he concluded, "Being close to the customer and being close to the employees are two things you can never overemphasize." TCS's AI data center investments and negotiations demonstrate its proactive efforts to position itself in India's and the global AI infrastructure landscape to address the business transformations brought by emerging technologies.
