Tata Consultancy Services (TCS) is now in discussions with several global hyperscalers to develop additional AI data centers in the country.
The move follows TCS’s recent agreement with OpenAI to build AI-focused data centers in India. Speaking from the company’s offices in London, CEO K Krithivasan confirmed that talks are underway with more technology players. “We are having discussions with multiple other hyperscalers,” he said. “We are in advanced discussion with multiple players.”
Krithivasan believes India will see a major surge in AI infrastructure demand in the coming years. According to him, the country may require about 10 gigawatts of AI data center capacity by 2030, while only about 5 or 6 gigawatts have been announced so far. TCS aims to help close this gap.
“We are very, very bullish,” said the 61-year-old CEO. “There is going to be lot of latent demand or unmet demand by 2030 so there is going to be a lot of investment required.”
The company is also adjusting its strategy as the global IT services market evolves. TCS, known for providing technology expertise to Western banks, airlines and other companies, has faced increasing pressure from competition, changing US visa policies, and the rapid rise of AI technologies. The company’s shares have declined about 20 per cent this year and around 23 per cent since Krithivasan became CEO in June 2023.
Industry experts say IT service providers are facing a shift in client spending. Corporate customers are redirecting budgets towards AI investments instead of traditional IT services.
However, Krithivasan does not see AI replacing enterprise technology systems entirely. “Will the whole value chain be replaced by an LLM? It’s a far-fetched thing. That’s not going to happen,” he said. “It’s not that you can just go drop Anthropic in there.”
TCS recently announced at India’s AI Impact Summit that it plans to partner with OpenAI to build AI facilities ranging from 100 megawatts to 1 gigawatt. A 1 gigawatt data center could cost between $35 billion and $50 billion, but TCS will only fund part of the infrastructure. The company plans to invest $1 billion, while TPG Inc. will contribute another $1 billion, with the remaining funds raised through debt.
Krithivasan believes these investments will allow TCS to provide full AI services to clients. “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.”
The company currently employs around 600,000 people worldwide. It hired about 85,000 employees in 2025 and has already issued 20,000 job offers for 2026, with plans to continue hiring while focusing on new skill sets linked to AI.
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