Infosys Ltd. has ruled out entering the AI infrastructure and data centre business for now, setting it apart from peers Tata Consultancy Services (TCS) and HCLTech, both of which have outlined strategies around AI infrastructure as demand for generative AI accelerates.
Speaking during the company's June quarter earnings call, Chief Executive Officer and Managing Director Salil Parekh said Infosys had internally reviewed the opportunity but decided against making investments in the space at this stage.
"We've internally reviewed what we want to do in terms of our balance sheet. We've had discussions with the management team and the board, and we have decided not to do anything in that space at this stage," Parekh said when asked whether Infosys would enter the AI infrastructure and data centre business.
The comments come as global technology firms and several Indian IT companies step up investments in AI infrastructure to support growing enterprise demand for generative AI workloads. Infosys' stance contrasts with HCLTech, which has identified AI infrastructure and data centres as a strategic growth opportunity.
During its post-results press conference, HCLTech said AI-driven productivity could result in a 2-3% revenue deflation impact. However, the company maintained its FY27 constant currency revenue growth guidance of 1-4%, stating that underlying business growth would more than offset the AI-related headwind.
HCLTech also said that "the biggest opportunity is not to rent AI but to own it", highlighting its investments in AI infrastructure and data centres. The company noted that part of the computing capacity would be used internally while the rest would support clients, allowing it to build a presence in one of the fastest-growing segments of the technology market.
Macro Environment Remains Uneven
Addressing the broader business environment, Parekh said Infosys had expected macroeconomic conditions to stabilise in the second half of fiscal year 2027, which was reflected in its earlier revenue guidance. However, the environment has remained more uneven than anticipated, prompting the company to trim the upper end of its fiscal 2027 revenue growth guidance.
"We had a sense that the macro was settling down. Things are a little more uneven today, but they could stabilise over time. Our guidance reflects what we see today rather than a prediction of exactly when conditions will improve," he said.
Despite the cautious outlook, Parekh reiterated that the company continues to expect demand to recover if technology spending strengthens and maintained its operating margin guidance for the financial year.
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