Tata Consultancy Services (TCS) has announced a major strategic partnership with U.S. private equity firm TPG Terabyte Bidco Pte. Ltd. to accelerate the growth of its new AI-focused data center business, named HyperVault AI Data Centre Limited.
This landmark agreement marks a significant shift in strategy for TCS, moving into a more capital-intensive model to capture the surging demand for Artificial Intelligence (AI) infrastructure in India.
💰 Investment Details
| Feature | Details |
| Total Commitment | Up to ₹18,000 Crore (approx. $2.1 Billion) to be invested by both partners over the next few years. |
| TPG's Investment | TPG will commit up to ₹8,820 Crore (approx. $1 Billion). |
| Funding Mix | The total funding for HyperVault will be a mix of equity from both TCS and TPG, and debt. |
| Equity Ratio | The capital commitment ratio is 51:49 between TCS and TPG. |
| Shareholding | TPG's final shareholding is expected to be between 27.5% and 49%, with TCS retaining board majority. |
🎯 Strategic Goals of HyperVault
Capacity Target: To build over 1 Gigawatt (GW) of AI-ready, large-scale data center infrastructure across India over the next 5-7 years.
Focus: The centers will be purpose-built, often featuring liquid cooling and high rack densities, necessary for intensive AI and high-performance computing (HPC) workloads, as well as Sovereign Data hosting.
Customer Base: The platform will target hyperscalers, large AI companies, government entities, and private enterprises.
TCS Ambition: The partnership is central to TCS's goal of becoming "the world’s largest AI-led technology services company," by being uniquely positioned to offer complete AI solutions, from infrastructure to service delivery.
TCS views this partnership as key to reducing its overall capital outlay while driving strong returns for shareholders and leveraging TPG's expertise in digital and green infrastructure.