Tata Consultancy Services (TCS), India’s largest IT services company, has announced plans to construct a 1 gigawatt (GW) AI data center in India by 2028, with an estimated investment of ₹42,000 crore ($5 billion), as reported by Economic Times and Business Standard on October 8, 2025. For tech investors, AI developers, and industry analysts searching TCS AI data center India 2025, 1 GW data center TCS, or India AI infrastructure growth, the facility, to be located in Gujarat or Maharashtra, aims to support India’s burgeoning AI ecosystem, aligning with global trends like OpenAI’s $1 trillion infrastructure deals and Nvidia’s UAE chip sales. The data center, powered by renewable energy, will cater to AI workloads for TCS’s clients, including global enterprises and Indian startups, and is expected to create 10,000 jobs while strengthening India’s $10 billion data center market, growing at 20% CAGR. TCS is partnering with Nvidia and Tata Power to equip the facility with cutting-edge GPUs and sustainable energy solutions.
This project, alongside Tata Capital’s 1.96x-subscribed IPO and India’s $10 billion iPhone export surge, underscores India’s rise as a global tech hub in 2025.
Project Details: TCS’s 1 GW AI Data Center
The 1 GW AI data center, one of the largest in Asia, will be a cornerstone of TCS’s AI strategy:
- Capacity: 1 GW, capable of supporting 100,000 Nvidia H100 GPUs or equivalent for AI training and inference.
- Investment: ₹42,000 crore ($5 billion), funded via TCS’s ₹50,000 crore cash reserves and debt.
- Location: Likely Gujarat or Maharashtra, leveraging proximity to Tata Power’s renewable energy hubs.
- Timeline: Construction begins Q1 2026, with partial operations by 2027 and full capacity by 2028.
- Partners: Nvidia for GPUs, Tata Power for 1 GW renewable energy, and L&T for construction.
- Clients: Global firms (e.g., BFSI, healthcare) and Indian AI startups like Sarvam AI.
TCS CEO K Krithivasan: “Our 1 GW AI data center will position India as a global leader in AI innovation.”
| Metric | Details |
|---|---|
| Capacity | 1 GW |
| Investment | ₹42,000 Cr ($5B) |
| Timeline | 2026-2028 |
| Jobs Created | 10,000 |
| Key Partners | Nvidia, Tata Power, L&T |
Strategic Context: India’s AI and Data Center Boom
The data center aligns with India’s ambition to lead in AI and cloud computing:
- Market Size: India’s $10 billion data center market grows at 20% CAGR, driven by AI and 5G adoption.
- AI Demand: India’s AI market, valued at $15 billion, expects 25% CAGR, with 500,000 AI jobs by 2030.
- TCS’s Role: $12 billion FY25 revenue, with 30% from AI and cloud services.
- Synergies: Leverages Tata Group’s ecosystem, including Tata Capital’s ₹7,500 crore IPO and Tata Power’s 10 GW renewable capacity.
Implications and Challenges
- Opportunities:
- AI Leadership: Positions TCS to capture 20% of India’s AI compute market by 2030.
- Economic Impact: 10,000 direct jobs and 50,000 indirect jobs in construction and tech.
- Global Clients: Attracts MNCs needing AI infrastructure, boosting TCS’s $10 billion order book.
- Challenges:
- Energy Costs: 1 GW power demand requires ₹10,000 crore in energy infrastructure.
- Competition: AWS, Google Cloud, and AdaniConneX plan 2 GW of data centers by 2028.
- Execution Risks: Delays in GPU supply or land acquisition could push costs up 10%.
Outlook: TCS’s AI Data Center Vision
TCS aims to scale the data center to 2 GW by 2032, supporting 1 million AI workloads daily and generating ₹5,000 crore in annual revenue. The project will also train 100,000 engineers in AI infrastructure management by 2030.
Conclusion: TCS’s 1 GW AI Leap
TCS’s 1 GW AI data center, set for 2028 with a $5 billion investment, positions India as a global AI hub, leveraging Nvidia GPUs and Tata Power’s renewables. Amid Tata Capital’s IPO success and India’s tech boom, the project fuels AI innovation but faces energy and competitive hurdles. For TCS, it’s a computational giant—will it redefine India’s AI future? The servers spin up. Business standard
