By Admin 
Tata Communications Share: A tremendous rise was seen in the shares of Tata Group company Tata Communications Limited (Tata Communications Share) on Friday. Its shares rose by 15 percent to reach Rs 1,948 and became one of the most profit making shares on NSE.
Amid growing confidence in the stock, investors invested huge amounts in it. Shares of Tata Communications have gained about 21 percent in the last six trading sessions. The reason behind the rise in shares is an announcement made by Tata Consultancy Services.
Why did shares become rockets?
TCS announced to build 1 gigawatt AI data center capacity in the next five to seven years. Market analysts say Tata Communications Limited can play a key role in this expansion by providing the data center-to-data center (DC-to-DC) connectivity required for TCS’s AI infrastructure. Experts also said that Tata Communications is already working on a solution that seamlessly connects enterprises, cloud platforms and data centers. He further said that the company is well positioned to benefit from the growing AI and data ambitions of the Tata Group.
This AI data center of 1 gigawatt capacity will cost approximately $1 billion for every 150 MW, while the total expenditure on it will be more than $6.4 billion. Its funding will be done through loan and equity. TCS will keep its data center business separate and all data and computing will be hosted in India.
Reason for this decision of TCS
Analysts at Nirmal Bang Brokerage emphasized that TCS chose this business because it creates synergy with existing hyperscalers and AI-native companies, which will use this data center to meet their needs in India. Apart from this, there will be a unique synergy with other companies of Tata Group. There are talks that Tata Communications with its existing data connectivity and cloud infrastructure network will be the biggest beneficiary of this move by TCS. That means Tata Communications will be the biggest beneficiary of TCS’s AI data center.
Tata Communications shares become strong
Tata Communications shares also look strong on the technical charts and are trading above all its 8 major moving averages – 5, 10, 20, 30, 50, 100, 150 and 200-DMA – which are pointing towards a bullish trade in both short and long term. At the same time, TCS shares closed with a fall of 2 percent on Friday.
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