OpenAI might become anchor investor for TCS's new data center
What's the story
Tata Consultancy Services (TCS) is working on a new data center in Navi Mumbai. The facility is being developed in partnership with global private equity firm TPG. It will be the first project to go live on the HyperVault platform and will have a capacity of around 120MW. The data center is expected to be operational within 18 months.
Client acquisition
TCS seeks AWS, OpenAI as anchor clients
TCS is in talks with several hyperscalers, including Amazon Web Services (AWS) and artificial intelligence firm OpenAI. The company hopes to sign them up as anchor customers for its Navi Mumbai data center. The discussions are at an early stage and no binding agreements have been signed yet. The focus is on hyperscalers and AI-led firms that require large-scale, high-density computing infrastructure in India.
Expansion plans
TCS explores additional data center locations in India
Along with the Navi Mumbai project, TCS is also looking for other data center locations across Telangana, Gujarat, Andhra Pradesh, as well as Tamil Nadu. The company wants to create a multi-location footprint to support future capacity expansion. The sites are being evaluated based on power availability, connectivity, land access, and also proximity to enterprise and cloud demand centers.
Strategic partnership
TCS and TPG's JV for AI data center business
The Navi Mumbai data center project is part of a joint venture between TCS and TPG. Under this structure, TPG is investing up to $1 billion for a minority stake, while TCS holds majority ownership. The strategic partnership aims to build out TCS's AI data center business under the HyperVault platform, with plans for gigawatt-scale and AI-ready infrastructure over the coming years.
Market potential
India's data center market poised for rapid growth
India's data center market is still in its early growth stages, with an estimated installed capacity of around 1.5GW. However, industry projections suggest this could exceed 10 GW by 2030. The sector has already attracted nearly $94 billion in investments since 2019, driven by cloud adoption and digital public infrastructure. TCS's expansion plans come as demand for data center capacity in India accelerates due to these factors.