While announcing its quarterly results, the TCS board approved the creation of a TCS subsidiary that will focus on building a sovereign data center with a capacity of 1GW. TCS will be keeping the data center business separate with a different management and team outside of TCS. The IT firm said the 1GW capacity will be built over a period of 5-7 years and the cost for every 150MW is $1 billion, implying an overall investment of $6.5 billion, which will be done equally over the next six years. Advertisement

The decision places TCS at an interesting crossroad, where it will be deploying significant capital, in high growth but lower RoCE business, than its own, said Nuvama.

"While this might not appear to be the best avenue to deploy capital, view the decision as a balanced one, as it exp

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