TCS Secures $1 Billion from TPG to Accelerate AI Data Center Expansion
Tata Consultancy Services (TCS) has secured a $1 billion investment from TPG to expand its AI data center business, HyperVault. This strategic partnership aims to build GW-scale AI-ready infrastructure and solidify TCS's position as a leading AI technology services company.
Ai Data CenterTcsTpgHypervaultGreen EnergyReal EstateNov 20, 2025
TPG is expected to hold between 27.5 percent and 49 percent of HyperVault, while TCS will commit to investing up to Rs 18,000 crore (over $2 billion) in the same period. The exact location of the data center and whether it will be powered by green energy are still under consideration.
This investment will facilitate the development of GW-scale AI-ready infrastructure, aligning with TCS’s plan to create AI-ready data centers with a capacity exceeding 1 GW in the coming years. The partnership marks a significant milestone in TCS’s ambition to become the largest AI-led technology services company. TPG’s investment in HyperVault is being facilitated through TPG Rise Climate and its Global South Initiative, a private equity strategy launched in partnership with ALTÉRRA.
Additionally, TPG is partnering through its Asia Real Estate business, marking a crucial milestone for the platform in India. In recent developments, Google announced plans to set up a 1 GW hyperscale data center and AI hub in Visakhapatnam as part of its $15 billion investment. Similarly, Reliance Industries Ltd. intends to establish a GW-scale AI-ready data center in Jamnagar, powered entirely by green energy.
N. Chandrasekaran, Chairman at TCS, expressed his enthusiasm about the partnership: “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. This 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 playing a leading role in creating world-class AI infrastructure and solutions for the industry and working towards making TCS the largest AI-led technology services company.”
Jim Coulter, Executive Chairman of TPG and a Managing Partner of TPG Rise Climate, shared his thoughts: “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.”
India currently has a data center capacity of about 1.5 GW, which is projected to exceed 10 GW by 2030. According to industry estimates, the Indian data center market has attracted nearly $94 billion in investments since 2019. TCS’s HyperVault will deliver secure, reliable, large-scale AI-ready infrastructure for hyperscalers and AI-driven organizations. It will offer purpose-built, liquid-cooled data centers with high rack densities, energy efficiency, and network connectivity across all key cloud regions.
TCS will collaborate closely with hyperscalers and AI companies to design, deploy, and optimize AI infrastructure, enabling world-class service delivery of AI services. With its deep partnerships and a full suite of AI solutions, TCS is poised to lead the AI-driven transformation globally, helping its customers thrive in an AI-first world.
Frequently Asked Questions
What is the amount of investment TPG is making in TCS’s HyperVault?
TPG is investing up to Rs 8,820 crore ($1 billion) in TCS’s HyperVault.
What is the expected final shareholding of TPG in HyperVault?
TPG is expected to have a final shareholding between 27.5 percent and 49 percent in HyperVault.
What is TCS’s commitment to investing in HyperVault?
TCS will commit to investing up to Rs 18,000 crore (over $2 billion) in its HyperVault business over the same period.
What is the projected data center capacity in India by 2030?
India’s data center capacity is expected to exceed 10 GW by 2030.
What is the purpose of TCS’s HyperVault?
TCS’s HyperVault is designed to deliver secure, reliable, large-scale AI-ready infrastructure for hyperscalers and AI-driven organizations, with high rack densities, energy efficiency, and network connectivity across all key cloud regions.
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