TCS teams with TPG for $1bn AI Data Centre Venture: Powering Indias Digital Future
TCS and TPG partner to establish a massive AI data center business, "Hypervault," with an Rs 18,000 crore investment. TPG commits $1 billion, acquiring a significant stake.
Mumbai: Tata Consultancy Services (TCS) has sealed a deal with private equity major TPG for its upcoming data centre business. India’s largest IT services company and TPG aim to pump in equity of around Rs 18,000 crore.
Both TCS and TPG have committed to a three-year lock-in on the investment, an exchange filing read. TCS shares were trading at Rs 3154 apiece at the time of writing this article on November 21, 2025.
TCS-TPG Hypervault
The deal says that TPG will be the only equity partner, and the firm will pump in USD 1 billion or around Rs 8,820 crore in the AI data centre business christened as 'Hypervault'. It will own a stake between 27.5-49 per cent in the venture.
In October 2025, TCS had announced its entry into the data centres business with an aim to have a 1 GW capacity. The plan required the Tata group firm to invest USD 6.5 billion (around Rs 57,600 crore).
TCS’ 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.
Tata Consultancy Services plans to house the data centres in Navi Mumbai, Hyderabad and Chennai.
"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. We are excited and committed to play a leading role in creating world-class AI infrastructure and solutions for the industry and work towards making TCS the largest AI-led technology services company,” N. Chandrasekaran, Chairman, TCS, said while commenting on TCS-TPG partnership.
Jim Coulter, Executive Chairman of TPG and a Managing Partner of TPG Rise Climate, said, "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.”