Mumbai: Tata Consultancy Services, a global leader in IT services, consulting, and business solutions, has announced a landmark strategic partnership with TPG, a leading global alternative asset management firm, to fuel the growth of its AI data center business, HyperVault. The $1 billion investment will support HyperVault’s ambitious plan to establish GW-scale AI-ready infrastructure, positioning TCS at the forefront of the global AI transformation.
HyperVault aims to create AI data centers with capacity in excess of a gigawatt, addressing the surging demand for AI-ready infrastructure across industries. The initiative underscores TCS’ vision to become the largest AI-led technology services company worldwide.
The funding structure will comprise equity contributions from both TCS and TPG, supplemented by debt. Together, the partners will commit up to ₹18,000 crore over the next few years. Of this, TPG will invest up to ₹8,820 crore, securing a final shareholding between 27.5% and 49% in HyperVault. The collaboration is expected to reduce TCS’ capital outlay, enhance shareholder returns, and create long-term value for the data center platform.
TPG’s investment is being facilitated through TPG Rise Climate and its Global South Initiative, launched in partnership with ALTÉRRA. Additionally, TPG’s Asia Real Estate business is participating, marking a significant milestone for the platform in India.
Chandrasekaran, Chairman of TCS, stated: “I am delighted to have TPG join us in our journey to build large GW-scale AI data centers in India, tapping the rapidly growing AI demand. It will further strengthen our partnership with hyperscalers and AI companies. With this capability, TCS is uniquely positioned to deliver complete AI solutions for its customers and partners. We are excited and committed to play a leading role in creating world-class AI infrastructure and solutions for the industry and work towards making TCS the largest AI-led technology services company.”
Jim Coulter, Executive Chairman of TPG and Managing Partner of TPG Rise Climate, added: “We are excited to partner with TCS and are grateful for our long-standing partnership with the Tata Group, both who share our vision and commitment to innovation and sustainability. Data centers are a multifaceted asset class and sit at the intersection of green energy infrastructure, technology and real estate. We look forward to bringing TPG’s sectoral expertise across these asset classes and working together with TCS to drive India’s next wave of digital infrastructure innovation in a climate-positive manner and build a more resilient future for the country’s digital and data economy.”
With AI demand surging globally, AI data centers are becoming critical infrastructure for hyperscalers, AI companies, private enterprises, and the public sector. They provide the compute hardware, high-speed storage, and low-latency networks required to run real-time, large-scale AI models and applications.
India currently has a data center capacity of about 1.5 GW, which is projected to exceed 10 GW by 2030. Industry estimates suggest that India’s data center market has already attracted nearly $94 billion in investments since 2019. HyperVault will deliver secure, reliable, large-scale AI-ready infrastructure, offering purpose-built, liquid-cooled data centers with high rack densities, energy efficiency, and seamless connectivity across all major cloud regions.
TCS plans to collaborate closely with hyperscalers and AI companies to design, deploy, and optimize AI infrastructure, enabling world-class service delivery of AI solutions. With its deep partnerships and comprehensive suite of offerings spanning AI data centers, cloud, AI platforms, AI-led IT services, and industry-specific solutions, TCS is poised to lead the AI-driven transformation globally.
TCS was advised by AZB & Partners as legal counsel and Deloitte Touche Tohmatsu India LLP as tax advisors. TPG was advised by Cyril Amarchand Mangaldas and Latham & Watkins LLP as legal counsel, with Price Waterhouse & Co. LLP serving as tax advisors.
The transaction remains subject to conditions precedent and statutory approvals.
