Tata Consultancy Services (TCS) has partnered with TPG to invest ₹18,000 crore (approximately $2 billion) in building AI-focused data centres across India. TCS will retain a 51% stake in HyperVault, its newly formed AI data centre subsidiary, while TPG will acquire between 27.5% and 49%, depending on investment tranches. TPG's investment, up to ₹8,820 crore, will be facilitated through TPG Rise Climate and its Global South Initiative. The partnership has a three-year lock-in on share transfers, excluding affiliates.
HyperVault will offer liquid-cooled, high-density facilities for hyperscalers, large enterprises, AI companies, and government clients, with plans to build up to 1.2 GW of capacity over the next five to seven years. This initiative aligns with India's increasing investments in data centres. The project aims to establish TCS as a major player in the data centre space, meeting the growing demand for AI infrastructure. Revenue is expected to start within 18-24 months.
This strategic shift marks TCS's first instance of taking external equity from a private equity firm and external debt. The new business unit will operate as a co-location data centre provider, serving hyperscalers, Indian enterprises, government entities, and Tata group companies.
