TCS Is in 'Advanced' Talks for More AI Data Centers in India — OpenAI Deal Just the Beginning

Tata Consultancy Services (TCS) — India's largest IT services company — is rapidly repositioning itself as the backbone of India's AI infrastructure boom. CEO K Krithivasan confirmed in a Bloomberg interview in London on March 5, 2026 that TCS is in "advanced discussions with multiple hyperscalers" to build additional AI data centers in India — signalling that its landmark OpenAI partnership is just the first of several major deals in the pipeline.

CEO's Bold Statement: "Advanced Discussions With Multiple Players"

TCS, which just cut an agreement with OpenAI to build data centers for artificial intelligence in India, is nearing additional deals with other tech giants — signalling a commitment to reshaping its business model to capitalise on the emerging technology. "We are having discussions with multiple other hyperscalers," said CEO K Krithivasan during an interview at the company's offices in London. "We are in advanced discussion with multiple players."

His company is racing to build out the country's AI infrastructure because of what he sees as an enormous opportunity to deploy the technology in the world's most populous nation. India is likely to need about 10 gigawatts of AI data center capacity by 2030, he said, while only about 5 or 6 gigawatts have been announced so far. TCS wants to help close that gap.

The OpenAI Deal: What Was Announced

At the recently held India AI Impact Summit, TCS announced it would partner with OpenAI to build data centres of 100 MW to 1 GW in scale. While a 1 GW facility could cost $35–50 billion, TCS expects its share of the build-out to be $1 billion, with partner TPG Inc contributing a similar amount and the rest financed with debt.

Krithivasan articulated the strategic logic clearly: "The real payoff is distinguishing ourselves with AI infrastructure and access to leading models and Nvidia chips. We can offer end-to-end services: infrastructure, model training, agents, and application integration."

HyperVault: TCS's AI Infrastructure Platform

TCS has already been investing heavily in this direction. The company previously partnered with investment firm TPG to expand its AI-focused data centre business called HyperVault — with plans to develop gigawatt-scale AI-ready infrastructure. The project aims to support large-scale computing needs for AI training and deployment while strengthening India's position in the global technology ecosystem.

According to Krithivasan, India is expected to require around 10 gigawatts of AI-focused data centre capacity by 2030, while only about 5 to 6 gigawatts have been announced so far. "There is going to be a lot of latent demand or unmet demand by 2030," Krithivasan said. "We are very, very bullish."

The Hiring Shift: 600,000 Workers, New Skillsets Needed

Responding nimbly to client demands for AI will have knock-on effects on hiring. TCS has about 600,000 workers and is a large employer of college graduates. The company hired around 85,000 new staff in 2025 and intends to maintain its current pace — with 20,000 offers already extended for 2026.

However, the nature of hiring is changing. "We may need people with different kinds of skillsets," said Krithivasan. "We may end up hiring people with more creative skills, people with more business background." This signals a fundamental evolution in TCS's talent strategy — from pure-play coding and outsourcing to AI-era advisory and infrastructure capabilities.

The Pressure TCS Is Under — And Why AI Is the Answer

TCS, which pioneered the strategy of providing tech expertise to Western banks, airlines and other corporations, has been under pressure in recent years from rising competition, US visa policies, and the prospect of AI disruption. Once a stock market darling in India, the company's shares have declined about 20% this year and roughly 23% since Krithivasan took over in June 2023.

Bloomberg Intelligence analyst Anurag Rana put it bluntly: "Clients are cutting budgets because they're investing in AI. If clients are not spending, companies like TCS cannot do much." The AI data center pivot is TCS's most decisive answer to this structural disruption — turning a threat into an opportunity by becoming the infrastructure provider for the very technology disrupting its legacy business.

US Visa Policy: Not a Concern, Says Krithivasan

Krithivasan pushed back on the idea that rising protectionism under US President Donald Trump would hurt his business. While the US is hiking H-1B visa application fees to $100,000, TCS has scaled way back on such hiring. Fewer than 1,000 people will be hired through such visas this year. Of the approximately 40,000 TCS staff in the US, fewer than 15,000 are dependent on the talent visa — reducing TCS's exposure to immigration policy shifts significantly.

Key Facts at a Glance

  • CEO Statement: "Advanced discussions with multiple hyperscalers" for more India AI data centers
  • OpenAI Deal Scale: 100 MW to 1 GW data centers; TCS investment share ~$1 billion
  • AI Infrastructure Platform: HyperVault (with TPG as investment partner)
  • India AI Capacity Target: 10 GW by 2030 (only 5–6 GW announced so far)
  • TCS Workforce: ~600,000 employees globally
  • Staff Hired in 2025: ~85,000
  • 2026 Hiring Offers Extended: 20,000 so far
  • TCS US Workforce: ~40,000 (fewer than 15,000 on H-1B visas)
  • TCS Stock YTD Decline: ~20%
  • TCS Stock Decline Since CEO Took Over (June 2023): ~23%
  • Revenue Geography: Americas 51.3%, Europe 31.9%, India 5.71%
  • Interview Location: TCS London offices, March 3, 2026

Conclusion

TCS's pivot toward AI data center infrastructure is one of the most significant strategic transformations in Indian IT history. By securing the OpenAI partnership, launching the HyperVault platform, committing ~$1 billion in direct investment, and now pursuing advanced deals with multiple additional hyperscalers, CEO K Krithivasan is rewriting TCS's identity — from India's premier IT outsourcing giant to the infrastructure backbone of India's AI economy.

With India projected to need 10GW of AI data center capacity by 2030 and only half that announced so far, the opportunity is enormous. Whether TCS can execute this transformation fast enough — and whether the AI data center business can offset the structural pressure on its legacy services model — will define the company's next decade. For the latest TCS news and analyst coverage, follow Business Standard, The Economic Times, and Bloomberg.