TCS to Launch New Entity for AI and Data Centres in India

Tata Consultancy Services (TCS) is planning to set up multiple AI and sovereign data centres across India. These centres will provide infrastructure and technology services. The combined capacity of the centres is expected to be 1 GW, and all data and computing will stay within India, as per suggested reports.

New Subsidiary Approved

The board of TCS has approved the formation of a wholly-owned subsidiary to manage this AI infrastructure business. The subsidiary will have its own management but will coordinate with TCS’s other services. Revenues from this new unit are expected to start in 18 to 24 months.

AI and Services Unit

TCS has combined its existing AI teams into a new AI and Services Transformation unit. Amit Kapur has been appointed as Chief AI and Services Transformation Officer, reporting to COO Aarthi Subramanian. The unit will oversee AI initiatives and bring together expertise from across the company.

Partnerships and Projects

TCS is reportedly working with the French research institute CEA on Physical AI solutions. It has also partnered with Qualcomm to create an Innovation Lab for Edge AI projects. Additionally, TCS signed an MoU with C-DAC to build AI-enabled cloud platforms that follow India’s data localisation rules.

Employee Programs

To promote AI skills, TCS conducted the ‘Ideate and Build with AI’ Hackathon. Around 275,000 employees took part. The program is designed to strengthen AI knowledge and integrate it into company-wide projects.

TCS Share Price Performance 

As of October 10,  2025, 10:55 AM, Tata Consultancy Services (TCS) share price was trading at ₹3,034.60, a 0.89% decrease from the previous closing price for the day.

Read More: TCS Q2FY26 Results: Revenue Soared ~4% QoQ, Declared Interim Dividend of ₹11!

Conclusion

TCS’s new subsidiary and AI projects are for expanding infrastructure and technology services in India. The company is investing in partnerships, employee programs, and data centres to address India’s growing AI compute demand. With a phased rollout of 1 GW capacity and investments of $6-7 billion over 5 to 7 years, the company is set to create a comprehensive AI ecosystem in India.

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