Tata Consultancy Services has announced an investment agreement with global alternative asset manager TPG to accelerate the growth of HyperVault, its rapidly expanding AI data center business. The partnership represents one of the most significant investments to date in India’s AI infrastructure ecosystem and signals TCS’ intention to become the world’s leading AI-led technology services company.
Under the terms of the agreement, HyperVault will be backed through a combination of equity from TCS and TPG, as well as debt financing. The partners have committed to invest up to Rs 18,000 crore in the platform over the next several years, with TPG contributing up to Rs 8,820 crore. Once completed, TPG is expected to hold a shareholding of between 27.5 percent and 49 percent in the venture. TCS emphasized that the partnership will reduce capital outlay, improve shareholder returns, and create long-term enterprise value for the new data center platform.
The transaction represents a multi-pronged commitment from TPG, with the investment being facilitated through TPG Rise Climate and its Global South Initiative, established with ALTÉRRA. TPG will also participate through its Asia Real Estate business, marking a significant milestone in the firm’s India platform strategy.
HyperVault aims to build AI-ready, purpose-built data centers with capacities exceeding one gigawatt, addressing accelerating global demand for low-latency, high-density compute environments needed to run large-scale AI models. With India’s current data center capacity at approximately 1.5 gigawatts and expected to exceed 10 gigawatts by 2030, the sector has already attracted nearly $94 billion in investment since 2019. TCS expects HyperVault’s infrastructure to serve hyperscalers, AI companies, private enterprises, and government organizations alike.
The company stated that HyperVault will offer secure, liquid-cooled, high-density, energy-efficient data centers across major cloud regions. TCS will collaborate closely with hyperscalers and AI companies on AI infrastructure design, deployment, and optimization, enabling seamless delivery of AI-driven services globally. HyperVault complements TCS’ broader AI-focused ecosystem, which spans AI platforms, cloud services, IT services, and industry-specific AI solutions.
Support: Both firms were advised by leading legal and tax counsel for the transaction. TCS engaged AZB & Partners along with Deloitte Touche Tohmatsu India LLP, while TPG worked with Cyril Amarchand Mangaldas, Latham & Watkins LLP, and Price Waterhouse & Co. LLP. The deal is subject to regulatory approvals and standard closing conditions.
KEY QUOTES
“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.”
N. Chandrasekaran, Chairman, Tata Consultancy Services
“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.”
Jim Coulter, Executive Chairman of TPG and Managing Partner, TPG Rise Climate
