Tata Consultancy Services (TCS) is making one of the most significant strategic pivots in its history as India’s largest software exporter reported its first-ever annual second-quarter revenue decline of 2.66%, posting $7.47 billion in revenue. Despite the slowdown, the company is doubling down on artificial intelligence, with CEO K. Krithivasan announcing a $6–7 billion investment over the next six to seven years to build 1 GW of AI data centres across India.
The infrastructure will serve AI providers, deep tech companies, hyperscalers, and government clients, signalling a major leap in TCS’s commitment to AI-led transformation. Krithivasan stated that about $1 billion will be invested for every 150 MW of capacity, underscoring the company’s long-term vision to establish India as a global hub for AI compute and enterprise transformation.
“This is the biggest commitment to AI in our company’s history,” Krithivasan said, describing the initiative as a foundation for the next phase of growth. The investment marks a decisive shift from TCS’s traditionally conservative spending patterns and aligns with its broader strategy to embed AI across every business function.
As part of this transformation, TCS has consolidated its AI operations under a new AI and Services Transformation unit, headed by Amit Kapur, and introduced large-scale “ideate and build with AI” hackathons engaging over 275,000 employees. The company has pledged that every future project will be AI-led, signalling a full-scale cultural and technological pivot toward automation, intelligence, and innovation.
Industry analysts view TCS’s move as both ambitious and timely. Shubham Rathore of Gartner noted that enterprises are “recalibrating their technology investments, particularly in AI, favouring proven, off-the-shelf solutions over ambitious custom development.”
The announcement comes amid intensifying competition in India’s AI ecosystem, with HCLTech partnering with OpenAI, Cognizant expanding AI engineering capabilities, and Tech Mahindra joining the IndiaAI Mission. While the IT sector faces headwinds including slow growth, layoffs, and rising H-1B visa costs, TCS’s multibillion-dollar bet on AI could redefine the trajectory of Indian IT — anchoring the company’s transition from a traditional services provider to a global AI powerhouse.
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