TCS expands Morrisons partnership, unveils AI data center plans

Tata Consultancy Services (TCS) announced on November 4, 2025, an expanded five-year partnership with UK supermarket chain Morrisons. This collaboration aims to transform Morrisons' customer experience by delivering new digital products, enhancing operational efficiency across retail, e-commerce, and marketing, and accelerating digital transformation. TCS will implement an automation factory and a Business Intelligent Command Centre to provide a 360-degree operational view and data-driven decision-making, while modernizing legacy platforms and embedding AI-powered solutions.

Concurrently, TCS is embarking on a significant investment in AI-led data centers in India. As detailed in an investor call transcript from October 31, 2025, TCS aims to become the world's largest AI-led technology services company. The plan involves building passive data centers with a total capacity of 1 GW over 5 to 7 years, phased in 100 to 200 MW pods. The first phase, approximately $600m to $1bn, will be funded through a combination of debt and equity, with the goal of generating long-term annuity revenues and maintaining industry-leading return ratios.

These AI data centers will primarily focus on high-power density, utilizing liquid cooling for over 70% of operations, and achieving Power Usage Effectiveness between 1.25 and 1.3. The build-out is demand-driven, targeting hyperscalers and AI companies, with an expected 18-month construction cycle once land is available. TCS foresees these initiatives enhancing its service offerings and strengthening its position in the rapidly growing AI and digital transformation markets.