Outgoing CEO Salil Parekh stated that while the company had considered a move into the data centre realm, it ultimately determined that the necessary investment would not align with its balance sheet nor provide adequate returns.
“We’ve assessed that situation, and we are not intending to enter the data centre market,” Parekh shared in an exclusive interview with CNBC-TV18’s Shereen Bhan.
“We’ve analyzed our balance sheet and the potential cash outlay required to establish a large-scale data centre, along with other demands, mainly related to energy projects,” he continued.
“At this point, we have decided that this route will not benefit us, particularly given our financial standing, as the cash demands could be significantly high.”
Parekh noted that the management and board had both reviewed the proposal before Infosys ultimately chose to decline it.
This decision distinguishes Infosys from its larger competitor, Tata Consultancy Services (TCS), which is striving to establish itself across the AI value chain, covering everything from physical infrastructure to enterprise applications and consulting.
Indian IT companies and their approach to AI adoption
The strategies employed by India’s leading IT firms indicate that each is formulating its own unique AI playbook.
TCS has introduced HyperVault, an AI-focused data centre initiative aiming to achieve over one gigawatt of capacity in India. Private equity firm TPG has pledged up to $1 billion for this venture, targeting hyperscalers, AI firms, and enterprises seeking local infrastructure for sovereign and enterprise AI.
TCS is also collaborating with AMD on a blueprint for an AI-ready data centre that can support up to 200 megawatts of capacity. In July, the company reported that its annualized AI services revenue had reached $2.6 billion following more than 5,500 client interactions.
In contrast, Infosys is focusing on areas above infrastructure. Its strategy revolves around assisting customers in selecting and implementing models, developing AI agents, and modernizing existing technology systems. Parekh mentioned that AI constituted over 8% of Infosys’s revenue in the last quarter, showing double-digit sequential growth for several quarters.
HCLTech is pursuing a more ownership-driven approach. It has invested $150 million in Indian AI firm Sarvam, enhancing its exposure to model development, training infrastructure, and enterprise deployment. Additionally, plans have been announced to invest up to ₹3,500 crore in AI data centres, including a facility in Bhubaneswar, developed in collaboration with Sarvam and the Odisha government.
Meanwhile, Wipro is concentrating on transforming segments of its service offerings into reusable AI platforms. In April, it launched a dedicated AI-Native Business and Platforms unit aimed at developing agentic AI solutions and adopting a SaaS model. Its Wipro Intelligence portfolio integrates consulting, platforms, and industry-specific offerings, building on an earlier pledge to invest $1 billion in AI capabilities and training.
Tech Mahindra is leveraging its industry expertise, particularly in telecommunications, while opting to partner with hyperscalers rather than managing large-scale computing infrastructure.
