TCS Secures $1Bn Investment from TPG to Accelerate AI Data Center Business HyperVault

Tata Consultancy Services (TCS) has announced a strategic partnership with global investment firm TPG to help grow its AI data center business, HyperVault.

The investment will help HyperVault build large-scale, AI-ready infrastructure and supports TCS’ plan to develop data centers with more than a gigawatt of capacity in the coming years. This partnership is a major step toward TCS’ goal of becoming the world’s biggest AI-focused technology services company.

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HyperVault will be funded through a mix of equity from TCS and TPG, along with debt. Together, they plan to invest up to Rs 18,000 crore over the next few years. Of this, TPG will put in up to Rs 8,820 crore and is expected to end up with a 27.5%–49% stake in HyperVault.

Bringing TPG on board as a strategic partner will help TCS boost shareholder returns, lower its own capital burden, and create long-term value for the data center business.

TPG’s investment in HyperVault is coming through TPG Rise Climate and its Global South Initiative, a private equity strategy launched with ALTÉRRA. TPG is also participating through its Asia Real Estate business which marks a key milestone for the platform in India.

N. Chandrasekaran, Chairman, TCS, commented, “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.”

Jim Coulter, Executive Chairman of TPG and a Managing Partner of TPG Rise Climate, said, “We are excited to partner with TCS and are grateful for our long-standing partnership with the Tata Group, both who share our vision and commitment to innovation and sustainability. 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.”

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TCS’ HyperVault will provide secure, reliable, large-scale AI-ready infrastructure for hyperscalers and AI-focused companies. It will offer liquid-cooled data centers designed for high rack density, energy efficiency, and strong network connectivity across major cloud regions.

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