Tata Consultancy Services has partnered with TPG to secure $1 billion for its AI data center initiative, HyperVault, aimed at establishing a GW-scale AI infrastructure in India.

Target Information

Tata Consultancy Services (TCS), a renowned global leader in IT services, consulting, and business solutions, has announced a strategic collaboration with TPG, a prominent global alternative asset management firm. This partnership aims to bolster TCS's AI data center business, HyperVault, which is designed to meet the increasing demand for AI-capable infrastructure. The investment will enable the construction of large-scale AI data centers exceeding one gigawatt (GW) in capacity, aligning with TCS’s ambition to become the premier AI-driven technology services provider.

The funding for HyperVault will be sourced from a combination of equity contributions from TCS and TPG, along with debt financing. Collectively, both partners are set to invest up to Rs 18,000 crore over the coming years, with TPG investing up to Rs 8,820 crore and anticipated to hold a share between 27.5% and 49% in HyperVault. This strategic partnership is expected not only to enhance shareholder returns for TCS but also minimize capital expenditure while creating long-term value for the data center platform.

Industry Overview in India

The demand for AI-capable data centers in India is rapidly accelerating, driven by growing requirements from hyperscalers, artificial intelligence firms, and various sectors looking to implement AI technologies. Currently, India possesses abo