Tata Consultancy Services Ltd. (TCS) said TPG, an alternative asset management firm has agreed to invest about $1 billion in its AI data center business called HyperVault as an equity partner.
This investment will support HyperVault’s GW-scale AI-ready infrastructure build and aligns with TCS’ plan to create AI-ready data centers with capacity in excess of a GW over the next few years, the company said in a statement.
TCS’ HyperVault will be funded through a mix of equity from TCS and TPG, and debt. Both entities combined, will commit to invest up to ₹18,000 crore over the next few years.
Out of the total commitment TPG will invest up to Rs 8,820 crore and is envisaged to have final shareholding between 27.5% and 49% in HyperVault.
“Bringing in TPG as a strategic investment partner will help TCS drive stronger returns to its shareholders, reduce its capital outlay, and create long-term value for the data center platform,” TCS said.
TPG’s investment in HyperVault is being facilitated through TPG Rise Climate and its Global South Initiative, a private equity strategy launched in partnership with ALTÉRRA. Additionally, TPG is also partnering through its Asia Real Estate business for the platform in India.
N. Chandrasekaran, Chairman, TCS, said, “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,” he said.
Jim Coulter, Executive Chairman, 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,” he added.
With AI demand surging, AI-data centers play a crucial role by providing the necessary infrastructure to hyperscalers, AI companies, private enterprises and the public sector.
India currently has a data center capacity of about 1.5 GW which is expected to exceed 10GW by 2030. According to industry estimates, India’s data center market has attracted investments of nearly $94 billion since 2019.
TCS’ HyperVault will deliver secure, reliable, large-scale AI-ready infrastructure for hyperscalers and AI-driven organizations. It will offer purpose-built, liquid-cooled data centers with high rack densities, energy efficiency and network connectivity across all key cloud regions, it said.
It will work with hyperscalers and AI companies to design, deploy, and optimize AI infrastructure, to enable service delivery of AI services.
The transaction is subject to conditions precedent and statutory approvals.
Published – November 20, 2025 10:29 pm IST
