Big investment underway – Tata Consultancy Services and private equity firm TPG announced a multi-billion-dollar joint venture to set up data centres in India, TCS said in a statement. The tech giant is planning a massive capital investment of Rs 18,000 crore in a partnership with TPG.
TCS stated that out of the total commitment of up to Rs 18,000 crore, TPG will invest up to Rs 8,820 crore and is likely to have a final shareholding between 27.5% and 49% in the JV.
“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,” said N Chandrasekaran, Chairman, TCS
TCS capex plans
In an effort to expand its data centre footprint, the company has formed a wholly owned subsidiary named HyperVault AI Data Centre Ltd. The massive $2 billion investment by TCS, which is known for a capex-light model, comes amid the data centre-led investment boom in India and throughout the tech sector in the world.
Earlier in October, TCS announced its entry into the data centre space, setting up to 1.2 GW of capacity. The project of such a massive scale will require an investment of about $7 billion. According to the company’s statement, it will partner with investors and banks to secure equity investment and debt funding for the project.
Other data centre investments in India
Besides TCS, other major Indian conglomerates are preparing for significant investments in the data centre space. Last month, Adani partnered with Google to develop data centres in Andhra Pradesh with an investment of $15 billion.
Similarly, Reliance Industries has also joined hands with Meta and Google to develop 1GW data centres.