Mumbai: Tata Consultancy Services (TCS) has announced a major strategic partnership with global alternative asset manager TPG to accelerate the expansion of TCS HyperVault, its AI-driven data center business.
The collaboration includes a combined investment commitment of up to ₹18,000 crore, aimed at developing AI-ready data centers with capacities exceeding 1 GW in the coming years.
TPG’s Investment Boosts TCS HyperVault Expansion
Under the agreement, TCS HyperVault will be funded through a mix of equity contributions from TCS and TPG, alongside debt financing. TPG will invest up to ₹8,820 crore and is expected to hold a shareholding between 27.5% and 49% in the HyperVault platform.
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The partnership is designed to optimize capital allocation for TCS, enhance shareholder returns, and build long-term value across its AI data center operations.
TPG’s investment will be made via TPG Rise Climate and its Global South Initiative, developed in partnership with ALTÉRRA. The firm is also participating through its Asia Real Estate business, marking a significant milestone in expanding digital infrastructure investments in India.
N Chandrasekaran, Chairman of TCS, said the partnership will empower HyperVault to build GW-scale AI data centers in India, addressing fast-rising AI infrastructure needs.
He emphasized that the collaboration will strengthen TCS’ partnerships with hyperscalers and AI companies, positioning the firm to deliver comprehensive AI solutions and advance its ambition of becoming the largest AI-led technology services company.
Jim Coulter, Executive Chairman of TPG and Managing Partner of TPG Rise Climate, said the partnership reflects a shared commitment to innovation and sustainable digital infrastructure.
He highlighted that data centers are a unique asset class straddling energy, technology, and real estate – with this investment supporting India’s next phase of climate-positive digital infrastructure.
AI Demand Fuels HyperVault’s Infrastructure Strategy
Surging AI adoption across industries is driving demand for high-performance, low-latency AI data centers. India currently has about 1.5 GW of data center capacity, projected to exceed 10 GW by 2030. Since 2019, nearly $94 billion has been invested in India’s data center market.
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TCS HyperVault will offer secure, liquid-cooled, purpose-built AI-ready data centers with high energy efficiency, high rack densities, and strong network connectivity across key cloud regions.
The company will work closely with hyperscalers and AI-driven enterprises to design and optimize AI infrastructure critical for running advanced large-scale AI models.
TCS’ comprehensive AI portfolio spans AI data centers, Cloud, AI platforms, and AI-led IT services—reinforcing its global strategy to lead the AI-first transformation.
Advisors and Regulatory Approvals
TCS was advised by AZB & Partners on legal matters and Deloitte Touche Tohmatsu India LLP on tax. TPG was advised by Cyril Amarchand Mangaldas and Latham & Watkins LLP as legal counsel, and Price Waterhouse & Co. LLP as tax advisors.
The transaction is subject to statutory approvals and customary conditions precedent.
