Tata Consultancy Services (TCS) will invest $6.5 billion to create “world-class AI infrastructure” and targets about 1 gigawatt of capacity over five to seven years. The company plans a phased rollout in tranches of roughly 150 megawatts.
It will provide the sites, including power, cooling, networking, and security, to support AI workloads for global and domestic clients. The investment mix includes equity and debt and seeks to strengthen in-house capabilities while limiting technology dependence on external vendors.
TCS states that the first Indian AI data center will anchor the program. The 1 GW target broadly matches India’s current installed data-center capacity, underscoring the scale of the expansion. Leadership frames the initiative as part of an ambition to become the world’s largest AI-led services company, with a strong India focus and customer demand across markets.
India’s data-center ecosystem continues to attract private credit and long-tenor financing against contracted hyperscaler cash flows. Firms such as Apollo, Blackstone and CPP Investments have participated in structured debt and joint ventures.
Recent transactions—Digital Realty’s $7 billion joint venture with Blackstone, Aligned’s $1.7 billion private credit raise, and EdgeCore’s $1.9 billion financing - reflect bespoke capital stacks that support large campuses and multi-tenant facilities.
Industry executives expect India’s data-center capacity to exceed 2,000 megawatts within two years, requiring about $3.5 billion of incremental investment. Operators including AdaniConneX, Yotta Data, and CapitaLand have together raised around $2 billion for hyperscale sites in Mumbai, Chennai, and Hyderabad.
A Barclays report projects potential inflows of roughly $19 billion by 2030, compared with about $12 billion recorded last year. The shift toward long-dated infrastructure capital and predictable, contract-backed revenues is moving data centers into the mainstream of core infrastructure investing.
Data centers need large volumes of reliable electricity and robust grid infrastructure. Sector estimates point to about 11.3 GW of renewable projects tied to data-center demand, with roughly 5.6 GW operational—around 4.6 GW solar and 1 GW wind.
Power consumption trends also matter. In 2022, data centers used about 1% of global electricity and around 0.5% in India. Forecasts suggest usage could approach 8% globally and 3% in India by 2030 as AI adoption accelerates.
Rising loads create opportunities across power generation, transmission, cooling, and fiber connectivity. Utility suppliers such as Tata Power, Adani Power, Adani Green, and Power Grid could see higher demand as customers add capacity. Within the Tata group, analysts expect potential linkages with Tata Power, Tata Communications, and Tata Technologies as TCS’s campuses scale.
The Adani group also continues to expand data-center ventures, including participation in a planned large facility in Visakhapatnam. As India positions itself as a regional data hub, synchronized investment in electricity, grids, and networks will remain central to meeting AI-era computing needs.