Indian conglomerate Tata is planning a large-scale data center build-out across the country.

As part of its Q2 2025 results this week, Tata Group’s technology unit Tata Consultancy Services (TCS) has announced plans to launch a new business entity to develop 1GW of “world-class” AI data center capacity in India.

Details are sparse, but the company is looking to build sovereign AI data centers with large hyperscalers as customers.

During the company’s earnings call, K Krithivasan, TSC MD and CEO, said the venture would see $6-7 billion invested over the next five to seven years. The project would be funded via a mix of equity and debt.

For the quarter, TCS announced $7.46 billion in revenue and net income of $1.46 billion.

In the earnings release, Krithivasan added: “I am pleased with our strong Q2 performance. I would like to thank all our employees for their dedication and excellence. We are on a journey to become the world’s largest AI-led technology services company. Our journey is anchored in bold transformation across talent, infrastructure, ecosystem partnerships, and customer value. The investments, including the building of a world-class AI infrastructure business, demonstrate our commitment to this transformation.”

The current data center footprint of TCS, one of the largest technology companies in the world, is unclear.

Tata previously operated several data centers across India and Singapore via Tata Communications, but sold a majority stake in both countries to STT Telemedia’s STT GDC around 2017.

Data Center Map reports Tata Communications still operates around 22 data centers in 16 markets across five countries: India, the UK, Singapore, Portugal, and the US.

Tata Communications operates a cloud offering called Vayu Cloud. Around 2019, the company previously said it had 1 million square feet of collocation space in 44 locations worldwide.

The Tata Group was founded as a trading company back in the 1860s by members of the Tata family. Tata Consultancy Services Limited, originally known as Tata Computer Systems, was established in 1968 by initially providing punch cards to sister company TISCO (now Tata Steel).