TCS and TPG Partner to Invest Rs 18,000 Crore in AI Data Centre Business 'Hypervault' in India

TCS, India's largest IT services company, announced on Thursday a strategic partnership with private equity giant TPG for its upcoming AI data centre business, with both entities planning to invest Rs 18,000 crore.

The partnership, centered in Mumbai, will see TPG investing $1 billion (approximately Rs 8,870 crore) in the AI data centre venture named 'Hypervault', acquiring a stake ranging between 27.5-49 percent.

According to the official statement, "Bringing in TPG as a strategic investment partner will help TCS drive stronger returns to its shareholders, reduce its capital outlay, and create long-term value for the data centre platform."

This announcement follows TCS's declaration last month about entering the data centre sector, with plans to invest up to $6.5 billion to establish over 1GW of capacity.

Tata Sons Chairman N Chandrasekaran expressed enthusiasm about the partnership, stating, "I am delighted to have TPG join us in our journey to build large GW-scale AI data centres in India, tapping the rapidly growing AI demand. It will further strengthen our partnership with hyperscalers and AI companies." He added that this capability positions TCS uniquely to deliver comprehensive AI solutions for customers and partners.

Jim Coulter, Executive Chairman of TPG and managing partner of TPG Rise Climate, highlighted the strategic importance of data centres, describing them as "a multifaceted asset class" sitting "at the intersection of green energy infrastructure, technology and real estate."

TPG's investment in HyperVault will be facilitated through TPG Rise Climate and its Global South Initiative, a private equity strategy launched in partnership with ALTERRA. The firm is also participating through its Asia Real Estate business, marking a significant milestone for the platform in India.

The statement emphasized that AI data centres provide essential infrastructure to hyperscalers, AI companies, private enterprises, and the public sector. This infrastructure supports hosting compute hardware, high-speed storage, and low-latency networks required for running real-time, large-scale AI models and applications across industries.

Currently, India's overall data centre capacity stands at 1.5 GW, which is projected to increase dramatically to 10 GW by 2030. The data centre market has already attracted investments exceeding $94 billion to date, highlighting the sector's rapid growth trajectory.