TCS, TPG to invest Rs 18,000 crore for AI data centres; Tata group stock in focus

Shares of Tata Consultancy Services Ltd (TCS) are in focus on Friday after the IT bellwether announced a colossal strategic partnership with global asset management giant TPG to aggressively expand its footprint in the artificial intelligence infrastructure space. The deal marks a definitive pivot for India’s largest software exporter as it seeks to build HyperVault, a dedicated platform for AI-ready data centres.

In a regulatory filing submitted to the bourses late Thursday, TCS revealed that it has entered into a definitive agreement with TPG Terabyte Bidco Pte. Ltd. to collectively invest up to Rs 18,000 crore in HyperVault AI Data Centre Limited. This ambitious venture aims to establish a gigawatt (GW)-scale infrastructure to cater to the skyrocketing demand for AI and cloud computing capabilities in India.

According to the exchange filing, the capital infusion will be executed in tranches. While TCS will retain majority control, TPG is set to invest up to Rs 8,820 crore, which will translate into a significant minority stake ranging between 27.5 per cent and 49 per cent in HyperVault. The partners have agreed to an initial investment proportion of 51:49, underscoring a shared commitment to the platform’s expansion.

N. Chandrasekaran, Chairman of TCS, highlighted the strategic necessity of the move. “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,” Chandrasekaran said. He added that the partnership would “further strengthen our partnership with hyperscalers and AI companies,” positioning TCS to deliver end-to-end AI solutions.

The collaboration leverages TPG’s sectoral expertise through its TPG Rise Climate and Asia Real Estate units. Jim Coulter, Executive Chairman of TPG, noted that data centers now 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,” Coulter stated.

The announcement comes against the backdrop of a muted trading session. On Thursday, the TCS stock closed 0.05 per cent lower at Rs 3,145.75 on the BSE, slipping marginally from its previous close of Rs 3,147.20 apiece.

On the earnings front, TCS earlier reported a marginal 1.39 per cent year-on-year (YoY) rise in its consolidated net profit for the second quarter of the ongoing financial year 2025-26 (Q2 FY26). During the quarter under review, the profit stood at Rs 12,075 crore, compared to Rs 11,909 crore in the corresponding period of the previous year.