Copyright © HT Digital Streams Limit all rights reserved. Jatin Grover 4 min Read 15 Oct 2025, 08:15 IST Tuesday, Google also announced an investment of $ 15 billion to build AI-focused data centers in India. (Beeld: Pixabay) Summary of the Tata Group’s data center push – by the planned investment of TCS – as global technical giants increase their presence in India’s digital infrastructure space. New -delhi: Tata Communications Ltd is looking for with its sister business Tata Consultancy Services Ltd (TCS), as the IT Services giant starts a $ 6.5 billion investment to set up 1 Gigawatt (GW) of the new data centers. “Tata Communications has huge strengths in the data center to data center connectivity; we are the market leaders in it. As far as TCS is concerned, there are different areas where we work together, and that (new data center) will also be one of the area of collaboration with TCs,” said Amur Lakshminanan, managing director and CEO of Tata Communications. The move of the TATA group -through the planned investment of TCS -comes at a time when global technical giants increase their presence in the country’s digital infrastructure space, especially as the use of AI workloads and companies demands local data storage. Google also announced a $ 15 billion investment on Tuesday to build AI-focused data centers in the country. “We will continue to invest in making sure that the data centers, the rand, all related to the lowest possible latency and the highest resilience and reliable solutions. In India, we have seen a growing demand for data center capacity; have the capacity of the data center. Tata Communications also has a 26% stake in Stt Global Data Centers India Pvt. Ltd, according to the company’s annual report of 2024-25. Tata Communications, the AI suite, except the connectivity solutions, invested in AI Cloud and Agentic AI solutions, while also offering graphic processing units (GPUs) as a service to businesses to help them manage their wool computer requirements. In the cloud and security business, Tata Communications had a growth of 13% to £ 469 in the September quarter. GPUs are powerful computer discs originally designed to handle graphics and images, such as those in video games. Today, they are also used to perform complicated calculations for things like AI, machine learning and Big data. The company is also clumsy about the GPU-A-A-service business. “Currently, most of the use (of GPUs) for training purposes and not so much for inferences is. In the future, inferences will consume 80% of the GPUs and will consume 20%,” Lakshminarayanan said, adding that the company uses direct liquid cooling technology in their data center connections. He explained that the technology is beneficial because it consumes less power and ensures that the GPU’s up time and availability are the highest. Tata Communications has bought nearly 1,000 GPUs so far, but has not yet seen a significant jump in the enterprise revenue. It also offers GPUs to businesses as a service under the India AI mission and also uses it internally. “We won’t invest in more GPUs if the current 1000 GPUs are not used,” Kabir Shakir, CFO of the company, told analysts in a earnings call to discuss earnings in September Wednesday. When Lakshminarayan, in 2016, when Tata Communications sold some assets, was asked about the discharge of assets in the data center business, it was powered by a poor balance sheet and high debt. Today, he said, the company is in a much stronger financial position and is ready to invest, especially because AI offers a clear wind wind. “The rationale at the time was very different. The company had a very poor balance sheet, high debt and low margins. There is a strength in the balance sheet and appetite to invest now, “he said. The Red Sea revenue hit in the September quarter, the company’s turnover grew to 6.5% to £ 6,100 crore. However, the net profit fell by 27% to £ 183. The company’s ebitda (earnings before interest, tax, depreciation and amortization) margin dropped 48 basis points to 19.2%. The company said the recent cutting of cable in the Red Sea led to a loss of income and an increase in costs, as it had to lead traffic through alternative channels. ‘There is also the cost of repairing the cables cut, which involves sending the ships to the sea, and all that is expensive. The expenses incurred as a result of these disruptions will also continue the next quarter, ‘Lakshminarayanan said, adding that the company was able to handle the cable in the Red Sea, because the diversity of the cable work around the world. On September 6, cable cuts in the Red Sea, a critical route for global trade and communication, disrupted internet access in parts of Asia and West Asia. The interruption is reportedly due to cuts in two cable systems-the South East Asia-Middle East-West Europe 4 cable, operated by Tata Communications Ltd and the India Medical East-Western Europe cable, managed by a consortium that counts Airtel and Tata Communications as members. Data services, which make up 85% of Tata Communications revenue, had an increase of 7.3% to 5.179 crore during the quarter. Data services include core connection services, digital platforms and linked services. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #tata Communications #Tata Consultancy Services #AI Read Next Story
Tata Communications Eyes joins TCS at $ 6.5 billion data center Push
