India, Oct. 10 -- Tata Consultancy Services Ltd. is setting up a wholly owned subsidiary to build "world-class AI infrastructure", starting with a 1 GW AI data centre in India at an investment of $6.5 billion. That matches India's total installed data-centre capacity at present.

"We have set a target of 1 GW. We will be doing it in phases," Krithi Krithivasan, chief executive officer at India's IT bellwether said during an investor call after the company announced its September quarter earnings. "We expect to do 1 GW in 5-7 years."

According to TCS, every 150 MW of AI compute power will require an investment of $1 billion, which totals to $6.5 billion for 1 GW. The investment will be funded through equity and debt by bringing on board f...