Technology bellwether Tata Consultancy Services (TCS) has announced a partnership with global alternative asset manager TPG, securing an investment of up to Rs 8,820 crore to accelerate the growth of HyperVault, its AI-focused data center business. The partnership will support TCS’ plan to build AI-ready data centers exceeding one gigawatt of capacity over the next few years, marking a major step in the company’s ambition to become the world’s largest AI-led technology services provider.
The investment will be made through a combination of equity from TCS and TPG, along with debt, with total funding for HyperVault expected to reach up to Rs 18,000 crore. TPG’s shareholding is projected to fall between 27.5 percent and 49 percent once the investment is completed. TCS said bringing in TPG as a strategic partner will help strengthen returns to shareholders, reduce capital expenditure, and build long-term value for the HyperVault platform.
TPG’s commitment is routed through TPG Rise Climate and its Global South Initiative, launched in partnership with ALTÉRRA, as well as through the firm’s Asia Real Estate business. TCS described the collaboration as a significant milestone for HyperVault as it scales in India.
TCS Chairman N. Chandrasekaran said the partnership will support the development of large-scale AI data centers to meet rapidly growing demand from hyperscalers and AI companies. He added that the expanded capability positions TCS to deliver comprehensive AI solutions and reinforces its strategy to lead global AI-driven transformation.
TPG Executive Chairman Jim Coulter said data centers are a crucial intersection of green energy infrastructure, technology and real estate, and described the collaboration as an opportunity to advance India’s next phase of digital infrastructure growth in a climate-positive manner.
India’s data center capacity, currently estimated at around 1.5 GW, is projected to exceed 10 GW by 2030. Industry reports indicate nearly $94 billion in data center investments since 2019, driven by surging demand for cloud, AI, and digital services.
HyperVault will focus on delivering secure, purpose-built AI-ready facilities with liquid cooling, high rack densities, enhanced energy efficiency and strong connectivity across major cloud regions. TCS plans to work closely with hyperscalers and AI companies to design and optimize the infrastructure needed to support large-scale AI workloads in real time.
The company said the expansion of HyperVault complements its broader AI strategy, which spans AI data centers, cloud services, AI platforms, and AI-led IT and industry solutions aimed at helping customers operate in an AI-first environment.
