TCS AI data centre play divides analysts sharply

BROKERAGES SPLIT ON IT MAJOR'S HIGH-STAKES AI EXPANSION

- URVI MALVANIA

TATA CONSULTANCY SERVICES' (TCS) second-quarter results have left analysts divided - not on performance, which beat expectations on both revenue and profitability, but on the company's bold new bet on data infrastructure.

The IT major's plan to build a 1 GW artificial intelligence-focused data centre network over the next five to seven years has drawn sharply contrasting reactions from brokerages.

Some analysts view the move as a strategic leap that could strengthen TCS's presence in the fast-growing AI ecosystem. Experts from HDFC Securities said the investment "fits into the company's vision of becoming the world's largest AI-led technology services firm," while HSBC analysts called it a step that "reinforces TCS' relationships with hyperscalers." Goldman Sachs termed it a "bold, long-term move" that could account for nearly a fifth of India's future data-centre capacity.