As Indian corporate houses make a beeline to invest heavily in building data centres in the country, K Krithivasan, CEO and MD, Tata Consultancy Services (TCS) said the software services giant will be a differentiator in the lot, coupling AI infrastructure with services and partnerships so clients, including hyperscalers, get an integrated path to deploy and scale AI.

Sovereign cloud infrastructure and AI-ready data centers are key components of the overall AI value chain of TCS, he told Fortune India. "Our move to expand into the data center business is a deliberate extension of our ambition to become the world’s largest AI-led technology services company. This will allow us to offer end-to-end AI infrastructure solutions for hyperscalers, Indian enterprises, and government," said the CEO.

TCS plans a phased, multi-year investment in building AI data centers with prudent structuring. The first 100–200MW phase will carry a clear capex envelope, and the broader gigawatt-scale program is planned over 5-7 years, said Krithivasan. 

Last year, TCS launched a specialised AI data center business, HyperVault, in partnership with TPG to build secure, gigawatt-scale, AI-ready infrastructure in India. HyperVault will be funded through a mix of equity and debt. 

"We have brought in TPG as an equity partner. Together, TCS and TPG will invest up to Rs 18,000 crore over the next few years. Of the total commitment, TPG will invest up to Rs 8,820 crore and is envisaged to have final shareholding between 27.5% and 49% in HyperVault," he said.

Bringing TPG as a strategic investment partner will help TCS drive stronger returns for shareholders, reduce capital outlay, and create long-term value for the data center platform, he adds.

The plan to build AI-data centers with capacity in excess of a GW provides TCS an opportunity to deepen the partnerships with hyperscalers and broaden the scope of the offerings that they provide to public and private enterprises. Further, there is a demand-supply mismatch for AI data centers in India. Understanding and addressing this market gap creates an adjacency for TCS, which Krithivasan believes will give long-term returns.

"India’s capacity buildout is just getting started, and we are concentrating on facilities that will exclusively cater to AI workloads where supply is lagging demand. Our differentiation is coupling infrastructure with services and partnerships, so clients get an integrated path to deploy and scale AI," said the CEO. 

Krithivasan said that TCS will export that expertise to other markets as these capabilities mature with India experience. "Like with all our investments, you will see the same discipline you have come to expect from TCS over the years--- measured investments, prudent pacing, and a focus on durable shareholder value," he said.

The data center capacity in India is expected to catapult to 8GW by 2030 from 1.5GW at present. Besides the Tata group firm, conglomerates like Reliance Industries, Bharti Airtel, Adani and L&T are investing heavily in building capacities and capabilities in this domain. Google has recently started construction of its AI data center in Visakhapatnam, Andhra Pradesh, in partnership with AdaniConneX and Bharti Airtel’s Nxtra.