TCS, TPG to Invest $2 Billion in AI Data Center Subsidiary HyperVault
TCS and TPG will jointly invest $2 billion in HyperVault, TCS’s AI data center subsidiary, to build GW-scale AI-ready data centers across India. The partnership aims to boost digital infrastructure, strengthen AI capabilities, and deliver long-term value.
TCS partners with global investment firm TPG to inject $2 billion into HyperVault, accelerating India’s next-generation AI-ready data center infrastructure.
Tata Consultancy Services (TCS) has announced a major expansion of its AI data center ambitions with a joint investment of $2 billion (₹18,000 crore) into its data center subsidiary, HyperVault. The investment will be made in phases over the next few years, with global alternative asset manager TPG joining as a strategic partner.
TPG to Acquire Up to 49% Stake
As part of the agreement, TPG will inject $1 billion (~₹8,820 crore) as equity into HyperVault. After completion of all tranches, TPG will hold 27.5% to 49% ownership in the venture, while TCS will fund the remaining portion.
The company said the partnership will help boost shareholder returns, reduce capital burden, and strengthen HyperVault’s long-term growth prospects.
Boost for India’s AI-Ready Data Infrastructure
According to TCS, the capital infusion will support the development of GW-scale, AI-ready data centers across India. HyperVault aims to build more than 1 GW of capacity in the coming years, focusing on infrastructure bespoke for hyperscalers and AI-driven enterprises.
“This investment accelerates our journey to build large, AI-ready data centers in India,” said N. Chandrasekaran, Chairman of TCS. “It strengthens our collaboration with hyperscalers and AI companies and enhances our ability to deliver end-to-end AI solutions.”
Jim Coulter, Executive Chairman of TPG and Managing Partner of TPG Rise Climate, said the firm looks forward to supporting India’s next wave of digital infrastructure growth “in a climate-positive manner,” adding that the partnership aligns with TPG’s focus on innovation and sustainability.
Part of TCS’ Larger Data Center Push
The move follows TCS’ announcement in October about entering the data center sector with plans to build up to 1 GW of capacity, requiring more than $6.5 billion in total investments. TCS subsequently incorporated HyperVault Data Centers as a wholly owned subsidiary on October 30.
HyperVault will work with hyperscalers and AI-focused companies to design and optimize AI infrastructure, enhancing the delivery of AI services across industries.
Advisory Roles
TCS was advised by AZB & Partners (legal) and Deloitte India (tax).
TPG was advised by Cyril Amarchand Mangaldas, Latham & Watkins (legal), and Price Waterhouse & Co. (tax).
