New TCS disaster loading... data centers

Even after the partnership with TPG, TCS will end up investing $2Bn (approx 18k cr) in data center creation.

It's commodity business. Real money is made by either software players AWS, azure etc or by the service provide like electricity companies. For rest, it's simply rental business. Build data centers & rent them out. That's what TCS is doing. So margin for TCS in this business is approx 2-6%.

Please tell me name of any other company who is making 20%+ margins in the current business but want to invest in new area where margin are even lower!

In country like India, where climate is hot & water is scarce, electricity bill is the biggest expense. $2B in one time expense. But recurring expense of electricity is far more and that has to be paid irrespective of business conditions. Also TCS is going to compete with deep pocket players like reliance, jindal, mittal and adani, so it won't be able to rent data centers it at high cost.

Already google & elon musk are exploring possibility of establishing data centers in space. (It is actually far cost effective than on earth)

So even if AI bubble remain at peak & assuming all the data centers will be occupied, TCS will end up making 2-6% margins on this $2Bn. What if AI bubble will bust & TCS won't get enough renters for its data centers? Then it will be white elephants gathering dust with recurring operating expense.

& Guess from whose salaries this money will be deducted?

P.S. Find the companies who will be supporting the data centers e.g. electricity, building material suppliers etc and invest in their stocks. They will make money. TCS won't.!