Tata Consultancy Services on Thursday said that it has entered into a strategic partnership with global alternative asset manager TPG to scale up its newly formed AI data centre unit, HyperVault. The companies will jointly invest up to Rs 18,000 crore over the next few years, making this one of the largest capital commitments in the country’s data infrastructure space.
According to a TCS statement, the capital will be infused into HyperVault through a blend of equity, compulsorily convertible preference shares and additional debt. Of the total commitment, TPG will invest up to Rs 8,820 crore, with TCS contributing the balance to maintain a 51:49 capital participation structure. The investment will be executed in tranches and remains subject to conditions precedent and statutory approvals. Based on the final investment sequence, TPG is expected to own between 27.5 and 49% of HyperVault.
Significance of the partnership
The partnership is central to TCS’ plan to build gigawatt-scale, AI-ready data centres in India, designed for high-density compute requirements that conventional hosting facilities cannot support. HyperVault will focus on liquid-cooled, energy-efficient infrastructure aimed at hyperscalers, AI companies and large enterprises increasingly looking for domestic, high-performance processing capacity.
What did TCS Chairman say?
TCS Chairman N Chandrasekaran said the collaboration with TPG strengthens the company’s commitment to developing AI infrastructure at scale and enhances its strategic relationships with global AI players and hyperscalers.
“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. 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,” Chandrasekaran said.
TPG’s investment is being routed through its TPG Rise Climate fund and its Global South Initiative, a private equity strategy launched in partnership with ALTÉRRA. Additionally, TPG is also partnering through its Asia Real Estate business, marking an important milestone for the platform in India.
Data centres 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,” Executive chairman of TPG and a Managing Partner of TPG Rise Climate, Jim Coulter said.
HyperVault’s business model is built around long-term annuity-style revenue streams. TCS has highlighted on earlier analyst calls that both enterprises and regulators increasingly require compute and data to remain within Indian borders, giving local AI-grade capacity strategic importance in sectors adopting large-scale artificial intelligence.
The announcement aligns with the demand trends TCS recently outlined in its earnings call, where the company pointed to a sizeable gap between the country’s current 1.2–1.5 GW data centre capacity and the industry’s projected need, which could increase nearly ten-fold over the next five to six years. TCS has indicated that each 150 MW build-out will require roughly $1 billion in investment, with revenues typically beginning 18 to 24 months after launch.
On the advisory front, TCS was represented by AZB & Partners as legal counsel and Deloitte Touche Tohmatsu India LLP as tax advisor. TPG was advised by Cyril Amarchand Mangaldas and Latham & Watkins LLP on legal matters and by Price Waterhouse & Co LLP on tax.
The partnership gives TCS both capital support and sectoral expertise at a time when AI-driven compute demand is reshaping the economics of data infrastructure.