Tata Consultancy Services Ltd. (TCS), India’s largest IT services giant, has unveiled an ambitious strategy to lead the global artificial intelligence revolution. The company announced on Thursday that it will make strategic AI investments, including the creation of a new business entity dedicated to building world-class AI infrastructure.
This move comes as TCS reported higher second-quarter revenue but a dip in net profit amid global economic headwinds. Despite the challenges, the IT major is placing artificial intelligence at the very core of its transformation journey.
TCS: A 1 GW AI Data Centre in India
One of the most striking initiatives under TCS AI investments is the plan to establish a 1 GW AI data centre in India. The facility is expected to serve as the backbone of the company’s AI-led transformation, offering computational power and advanced infrastructure that will rival global tech majors.
TCS CEO K. Krithivasan stated:
“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.”
TCS Acquires ListEngage for AI Growth
In a parallel move, TCS has acquired ListEngage, a US-based Salesforce consulting and AI advisory company, for $72.8 million in cash. The acquisition not only strengthens TCS’s Agentic AI capabilities but also adds 100 professionals with over 400 Salesforce certifications to its US operations.
Altaf Shaikh, CEO of ListEngage, emphasized the synergy:
“This is more than an acquisition—it’s a growth platform. Together, we will set a new benchmark for how enterprises unlock the full value of Salesforce. I’m particularly excited about the AI opportunities ahead.”
Founded in 2018, ListEngage generated revenues of $24.3 million in FY24 and has built a reputation for driving digital marketing transformation through Salesforce and AI-driven solutions.
TCS: Reskilling Workforce in AI and Generative Technology
As part of its AI-first culture, TCS has reskilled more than half of its 600,000+ global workforce in artificial intelligence, machine learning, and generative AI. The company has also created an AI Experience Zone—an internal sandbox where employees can experiment with AI models, open-source tools, and applied innovation.
This approach not only strengthens TCS’s talent pool but also ensures that clients get access to cutting-edge solutions backed by AI expertise.
AI-Powered Global Deals
TCS’s growing AI credibility has translated into major deal wins. Recently, the company secured a €550 million ($644 million), seven-year contract with Scandinavian insurer Tryg to deploy AI, cloud, and digital tools to optimize IT operations.
With a total contract value (TCV) of $10 billion reported for the quarter, analysts note that a significant portion of these deals involve AI and automation components. This indicates that TCS is embedding AI into mainstream enterprise transformation rather than treating it as a peripheral experiment.
Market Performance
On Thursday, TCS shares rose 1.09% to ₹3,060.20 apiece on the Bombay Stock Exchange, outperforming the Nifty 50, which closed 0.54% higher at 25,181.80 points. The company’s quarterly results were declared after market hours, and investors appear optimistic about its AI-driven roadmap.
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