MC EXCLUSIVE AWS, OpenAI likely to come in as anchor tenants for TCS' Navi Mumbai data centre; TCS scouts sites in other states

TCS

• TCS, TPG to build Navi Mumbai data center for hyperscalers like AWS, OpenAI.
• Facility aims for 120MW capacity, set to go live in about 18 months
• TCS is scouting more sites across India as data centre demand surges

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Tata Consultancy Services (TCS) is in talks to sign up hyperscalers, including Amazon Web Services  (AWS) and artificial intelligence firm OpenAI, as anchor customers for its first data centre coming up in Navi Mumbai, people familiar with the matter said.

TCS’s Navi Mumbai facility is being developed in joint venture with global private equity firm TPG and is expected to be the first project to get operational on the HyperVault platform. The data centre, planned with a capacity of around 120 megawatts, is targeted to go live in about 18 months.

Discussions with potential clients are at an early stage and no binding agreements have been signed yet, sources said, adding the focus is on hyperscalers and AI-led firms looking for large-scale, high-density computing infrastructure in India.

Along with the Navi Mumbai project, TCS has also begun scouting for more data centre locations in Telangana, Gujarat, Andhra Pradesh and Tamil Nadu, as it looks to build a multi-location footprint to support future capacity expansion.

The company is evaluating sites based on power availability, connectivity, land access and proximity to enterprise and cloud demand centres, the sources said.

The expansion plans come as demand for data centre in India accelerates, driven by cloud adoption, increased artificial intelligence workloads and data localisation requirements. Industry estimates suggest India’s data centre capacity is expected to scale up sharply over the rest of the decade, prompting technology firms and infrastructure investors to lock in land and power tie-ups early.

Under the joint venture structure, TPG is investing up to about $1 billion for a minority stake, with majority ownership resting with TCS. The platform is expected to serve hyperscalers, AI-focused enterprises, government clients and group companies, sources said.

Emails sent to TCS, OpenAI and Amazon did not elicit a response till the time of publication, while TPG declined to comment.

TCS-TPG data centre deal

Announced in November, the partnership is aimed at building TCS’ AI data centre business under the HyperVault platform, with ambitions that go well beyond a single facility in Navi Mumbai. The partnership envisages the creation of gigawatt-scale, AI-ready infrastructure over the next few years, aligning with TCS’ broader goal of becoming a leading AI-led technology services company.

Under the HyperVault structure, TCS and TPG together have committed to invest up to Rs 18,000 crore over the coming years through a mix of equity and debt. TPG’s share of the commitment could go up to Rs 8,820 crore, translating into a final shareholding of between 27.5 percent and 49 percent, while TCS retains majority control.

Also Read: TCS and TPG announce partnership to invest $2 billion into data center subsidiary HyperVault

The Indian data centre market is still at a early stage of its growth curve. Current installed capacity is estimated at around 1.5 gigawatts but industry projections expect it to exceed 10 GW by 2030. Since 2019, the sector has attracted close to $94 billion in investments.

Why are data centre investments critical for India?

The development underline how India is increasingly positioning itself as a critical hub for global artificial intelligence infrastructure, as policy risks begin to surface in the United States around the rising electricity footprint of AI data centres.

Senior figures in the US political establishment have recently flagged concerns that American consumers could end up subsidising global AI demand through higher power costs, potentially altering where future compute-heavy workloads are hosted.

Peter Navarro, a senior adviser in the Trump administration, has indicated that AI data centres could be the next focus of policy action. Speaking on Real America’s Voice, an American streaming and TV channel, Navarro said the administration was looking “very very carefully” at how AI data centres were driving up electricity costs for Americans and suggested that “strong action” could follow. He also explicitly pointed to US-based infrastructure serving overseas demand, including large user bases in India and China.

Navarro questioned why AI platforms operating on US soil and consuming American electricity should be servicing users abroad, citing applications such as ChatGPT with significant traction in India and China. The comments come against the backdrop of Navarro’s long-standing criticism of India’s trade and tariff regime, reinforcing the possibility that AI infrastructure could get swept into a broader policy and trade debate if electricity costs become politically sensitive in the US.

The scale of global AI usage helps explain why infrastructure location is fast becoming a strategic issue.

According to data cited by venture investor Ruben Domínguez Ibar, ChatGPT recorded about 5.8 billion visits globally in August 2025, far outstripping rival AI platforms. While the US remained the largest single market with roughly 883 million visits, India accounted for around 544 million visits, or about 9 percent of the total traffic, making it one of the fastest-growing user bases worldwide. That surge in demand translates directly into soaring requirements for compute power, high-density racks, and reliable electricity, which make data centre economics and policy increasingly intertwined.

For global AI companies and hyperscalers, India offers a compelling alternative.

Power costs are lower than in many developed markets, land availability is improving with state-level policy support and data localisation rules are encouraging firms to host more workloads domestically. Against a backdrop where US policymakers are signalling discomfort with domestic electricity being used to serve overseas AI demand, India’s push to rapidly scale its data centre capacity could become even more strategically important.