Tata Consultancy Services (TCS) has begun discussions with several potential investors, including leading private equity firms, to sell a stake in its newly established data centre subsidiary.
“We are looking at an equity partner. The investment in the data centre business will be a mix of debt and equity. It’s too early to discuss the stake size or valuation,” said Sameer Seksaria, Chief Financial Officer, TCS.
Last week, the IT major announced plans to set up a 1-gigawatt data centre unit in India, an ambitious project estimated to require around $7 billion in investments over the next five to six years.
Addressing the crowded nature of the data centre market, Seksaria said TCS brings unique advantages through its deep customer relationships and hyperscaler partnerships. “Demand for data centres will far exceed supply as the digital economy expands. Unlike real estate players, we already have strong ties with hyperscalers, Indian enterprises, and government clients who will anchor this growth,” he noted.
Seksaria emphasized that the data centre venture is not a standalone move but a key component of TCS’s five-pronged AI-led strategy aimed at accelerating enterprise transformation. The company’s goal is to compress AI transformation timelines from three years to just six months by investing heavily in data infrastructure and talent.
During its Q2 results, TCS outlined its ambition to become the world’s largest AI-driven IT services firm, built on five pillars: internal transformation, AI-first services, future-ready talent, AI modernization for clients, and ecosystem partnerships with hyperscalers and niche AI innovators.
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