TCS, TPG to invest ₹18,000 cr in AI data centre joint venture
Tata Consultancy Services (TCS) and private equity group TPG will invest up to ₹18,000 crore in a data centre venture, HyperVault, according to a statement on Thursday.
TCS and TPG Terabyte will invest in the proportion of 51:49 in the venture. Of the total commitment, which will be over the next few years, TPG Terabyte will invest up to ₹8,820 crore and is envisaged to hold a final shareholding of 27.5-49 per cent in HyperVault. The funding will be through a mix of equity and debt.
TPG will help TCS deliver stronger returns to its shareholders, reduce capital outlay, and create long-term value for the data centre platform, the IT giant said in a press release.
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.”
According to Greyhound Research, the joint venture by TCS is a bet on the future anatomy of IT services. The traditional view of infrastructure ownership as “off-core” for firms like TCS has changed in the AI age. Greyhound described the announcement as TCS’s attempt to become the preferred host and AI infrastructure partner for cloud providers.
“Today, control over compute, especially GPU-rich, high-density environments, is central to delivering timely, secure, and scalable AI solutions. By designing and operating facilities purpose-built for liquid cooling, extreme power draw, and high rack density, TCS is taking direct control of the AI stack’s physical base layer. The move is as much about anchoring cloud alliances and embedding into hyperscaler ecosystems as it is about monetising real estate,” said Sanchit Vir Gogia, Chief Analyst and Founder of Greyhound.
As India gears up for building it’s AI infrastructure, hyperscalers, GPU-as-a-service providers and other AI companies will look for strategic partners. TCS with its existing relationship in the government and banking sector and the ability to executive large scale projects is well-positioned now to build a scalable AI data centre with the TPG investment, said Rajiv Ranjan, Associate Research Director at International Data Corporation (IDC).
“AI services market is expected to grow at more than 20 per cent CAGR in the next 5 years in India. This is a great step to drive that growth,” said Ranjan.
TPG’s climate-positive bet
For TPG, partnering through its Asia Real Estate business, the collaboration marks an important milestone for the platform in India. Jim Coulter, Executive Chairman of 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.”
Markets like Singapore, Hong Kong are facing a combination of grid saturation, energy cost and sustainability-related restrictions to build data centres. India offers a compelling alternative with low-cost power, strategic locations, said Titus M, Practice Director at Everest Group.
“Developed countries used to take the lion’s share of data centres. Now, while US still leads the charge, India, Brazil, UAE, Kenya are rapidly investing in DC infrastructure, indicating accelerated adoption,” he said.
HyperVault’s tech edge
TCS’s HyperVault will deliver secure, reliable, large-scale AI-ready infrastructure for hyperscalers and AI-driven organisations. It will offer purpose-built, liquid-cooled data centres with high rack densities, energy efficiency and network connectivity across all key cloud regions. TCS will work closely with hyperscalers and AI companies to design, deploy, and optimise AI infrastructure to enable world-class service delivery of AI services.
TCS had announced plans for a sovereign AI data centre during its quarter announcements in October. The tech giant had already acquired US-based ListEngage for $72.80 million towards this end and had talked of bringing in more finance partners for the equity.
India currently has a data centre capacity of about 1.5 GW, which is expected to exceed 10GW by 2030. According to industry estimates, India’s data centre market has attracted nearly $94 billion in investments since 2019. Major players in this market include Sify Infinit Spaces Ltd (SISL), Yotta Data Services, ESDS Software Solutions, among others.
Published on November 20, 2025