TCS and TPG partner to boost HyperVault with $1 billion AI data center investment

Tata Consultancy Services (TCS) has announced a partnership with global investment firm TPG, which will invest up to USD 1 billion to support the expansion of TCS’ AI-focused data center business, HyperVault. The partnership is aimed at accelerating the development of large-scale AI-ready data centers in India as demand for computing capacity increases across sectors.

Funding for HyperVault will come through equity contributions from both TCS and TPG, along with debt financing. The partners plan to commit up to ₹18,000 crore over the next few years. TPG’s share will be up to ₹8,820 crore, giving it an expected ownership stake between 27.5% and 49%. TCS says the partnership will help reduce its capital outflow while supporting long-term growth of the data center platform.

India’s current data center capacity is estimated at around 1.5 GW and is projected to exceed 10 GW by 2030, supported by growing cloud use and AI adoption. Industry estimates indicate nearly USD 94 billion has been invested in the sector since 2019.

HyperVault will offer AI-ready infrastructure, including liquid-cooled facilities, high-density racks and connectivity across major cloud regions. TCS plans to work with cloud and AI providers to design and operate these systems as enterprises shift toward AI-driven operations.

N. Chandrasekaran, Chairman, TCS, commented, “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.”

Jim Coulter, Executive Chairman of TPG and a Managing Partner of TPG Rise Climate, said, “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.”