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India's AI Data Boom: TCS Seals $1B Deal for Mega Data Centers
20 Nov
Summary
- TCS secured $1 billion for a $2 billion data center project.
- Demand for AI compute outstrips India's current data center capacity.
- India aims to boost capacity from 1.5GW to over 10GW by 2030.
Tata Consultancy Services (TCS) has partnered with private equity firm TPG, securing $1 billion as part of a $2 billion initiative to construct a network of gigawatt-scale data centers across India. This project, named "HyperVault," is a direct response to the burgeoning demand for AI compute power, which is rapidly outpacing the development of necessary infrastructure.
The urgency is amplified by India's significant data generation, yet its data center capacity remains comparatively low. Big tech firms and cloud providers are thus investing heavily to expand local infrastructure and capitalize on the nation's increasing AI adoption. HyperVault will feature liquid-cooled, high-density data centers designed to support advanced AI workloads.
This expansion is projected to increase India's total data center capacity from approximately 1.5 gigawatts currently to over 10 gigawatts by 2030. Despite potential challenges concerning water and power resources, global tech companies are prioritizing India for AI infrastructure development, with major investments announced by Microsoft, Google, and Amazon.
