TCS And TPG Launch $1 Billion HyperVault Push to Transform India’s AI Compute Power
TCS partners with TPG to build HyperVault AI centres, accelerating India’s high-capacity AI infrastructure growth.
Tata Consultancy Services (TCS), India’s largest IT services company, has secured a $1 billion investment from global private equity firm TPG for its newly created AI data centre platform, HyperVault. The partnership, announced on Thursday, will see the two entities jointly invest around ₹18,000 crore (approximately $2 billion) in equity and debt over the coming years to develop gigawatt-scale artificial intelligence data centres in India. TCS will retain majority ownership with a 51% stake, while TPG will acquire between 27.5% and 49% through its climate-focused fund, TPG Rise Climate.
The deal enables TCS to accelerate its ambitious plan to build 1 GW of AI-focused data centre capacity in India over the next five to seven years, effectively doubling the country’s current total installed data centre capacity of around 1.5 GW. The investment reduces TCS’s own capital outlay while allowing it to maintain strategic control of a business that Chairman N. Chandrasekaran described as critical for delivering “complete AI solutions” to global hyperscalers and enterprise clients. The collaboration also marks a strategic shift for India’s IT bellwether from traditional cost-effective outsourcing into the capital-intensive world of AI compute infrastructure.
The partnership aligns with India’s fast-growing data centre market, currently valued between $4 billion and $8 billion and projected to expand at 15-20% annually through the end of the decade. Industry forecasts suggest the country will require investments of $25-30 billion to reach 3.5-4.5 GW of capacity by 2030, driven largely by demand for AI training and inference workloads. Mumbai already accounts for more than half of India’s operational data centre stock, with significant new capacity also planned in Chennai, Hyderabad, and emerging hubs such as Visakhapatnam, where Google recently announced its own major AI data centre investment.
TCS shares closed marginally lower by 0.05% at ₹3,145.75 on the BSE following the announcement, even as the benchmark Sensex gained 0.52%. The transaction reinforces TCS’s positioning as a full-stack AI services provider and underscores growing private-equity interest in India’s digital infrastructure, with TPG highlighting the intersection of green energy, technology, and real estate as a compelling long-term opportunity in the climate-positive development of hyperscale AI facilities.
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