Tata Consultancy Services has announced a strategic partnership with Kalmar to modernize IT infrastructure through artificial intelligence integration. The collaboration focuses on transforming Kalmar's existing IT systems into a more efficient, unified operational framework.

Partnership Objectives

The partnership centers on merging Kalmar's IT services into a single, cohesive model designed to enhance both worker experience and operational efficiency. This transformation initiative leverages AI technology to streamline various IT processes and create a more integrated service delivery approach.

Technology Integration Strategy

The collaboration involves implementing AI-driven solutions to upgrade Kalmar's IT infrastructure. TCS will work to consolidate various IT services under a unified model, aiming to reduce complexity and improve service delivery across the organization.

Expected Outcomes

The partnership is designed to deliver improved worker experience through streamlined IT processes and enhanced system efficiency. By creating a unified IT service model, the collaboration aims to optimize operational workflows and reduce technological fragmentation within Kalmar's infrastructure.

This partnership demonstrates TCS's continued focus on AI-driven digital transformation services, positioning the company to deliver advanced technology solutions for enterprise clients seeking to modernize their IT operations.

Tata Consultancy Services is actively pursuing partnerships with major technology companies, including Amazon Web Services and OpenAI, as anchor customers for its first data centre facility in Navi Mumbai. The discussions represent a strategic move by the IT services giant to establish itself in the rapidly growing data centre market through its HyperVault platform.

Project Details and Timeline

The Navi Mumbai data centre is being developed as a joint venture between TCS and global private equity firm TPG. The facility is designed with a capacity of approximately 120 megawatts and is targeted to become operational within 18 months. This project marks the first facility to be launched under the HyperVault platform, representing TCS's inaugural attempt to build a standalone AI data centre business rather than simply consuming cloud capacity for clients.

Investment Structure and Commitments

The financial arrangement involves TPG investing up to $1 billion to acquire a minority stake in the venture, while TCS retains majority control. Both companies have committed a total of ₹18,000 crore through a combination of equity and debt financing. The platform is designed to serve multiple client categories, including hyperscalers, AI enterprises, government clients, and group companies, with ambitions extending beyond the single Navi Mumbai facility.

Market Opportunity and Growth Projections

India's data centre market presents significant growth potential, with current installed capacity estimated at roughly 1.5 gigawatts. Industry projections indicate this capacity could exceed 10 gigawatts by 2030, driven by increased cloud adoption, data localisation requirements, and growing AI workloads. This growth trajectory has attracted close to $94 billion in investments since 2019, prompting technology firms and infrastructure investors to secure land and power resources early.

Competitive Landscape and Major Projects

Several major data centre projects are currently under development across India. AdaniConneX has partnered with Google to develop a $15 billion AI campus in Visakhapatnam, targeting gigawatt-scale capacity with TPUs and GPUs for model training. Meta and Sify are constructing a ₹15,266 crore facility with 500 MW capacity in Paradesipalem near Vizag, focused on generative AI and AR/VR workloads. Additionally, Reliance Industries is pursuing a 1 gigawatt site in Jamnagar, expandable to 3 gigawatts, in partnership with NVIDIA for large language models.

Strategic Positioning

The timing of these investments aligns with India's positioning as a potential hub for global AI infrastructure. The country offers advantages including cheaper power costs, improving land availability, and localisation norms that encourage domestic hosting. For hyperscalers and AI firms, these factors make India an attractive alternative for large-scale, high-density computing infrastructure requirements. The discussions between TCS and potential anchor clients remain at an early stage, with no binding agreements signed yet, according to sources familiar with the matter.