Tata Consultancy Services (TCS) is reportedly partnering with private equity firm TPG to invest $2 billion in a joint venture focused on AI and sovereign data centers. The joint venture, named HyperVault AI Data Centre, will involve an equity investment of approximately $2 billion from both companies, with plans to raise an additional $4.5-$5 billion through debt financing over time. TCS will hold a majority 51% stake in the partnership.
This initiative represents a significant move into the growing artificial intelligence infrastructure space by one of India's largest technology services companies. The recent boom in AI, which requires vast amounts of computing data, has fueled a corporate rush to pour money into the technology globally and has led to an unprecedented growth in data centers across the world.
TCS aims to build up to 1.2 GW of data centre capacity over the next 5–7 years under this JV. According to the firm's estimates, every 150 MW will require about $1 billion, implying over $6.5 billion in total project investment. The HyperVault unit will cater to hyperscalers, Indian enterprises and government entities, along with Tata Group companies. The data centre business is expected to start generating revenue within 18–24 months. This move aligns with India's rapid data centre expansion, forecasted to reach 9 GW capacity by 2030.
This is the first time TCS is accepting external equity from a private equity player and also leveraging large-scale debt, underlining its commitment to the expanding data centre market amid accelerating demand for AI infrastructure. TCS is initiating a transformative venture into AI and Sovereign Data Centres by partnering with private equity firm TPG. This $2 billion alliance marks a strategic shift from TCS's traditional asset-light model, signalling its ambitions to lead the global AI-led technology services space.
The TCS–TPG collaboration for $2 billion underlines the growing demand for digital infrastructure in India. While it involves substantial capital outlay, the initiative positions TCS to play a key role in AI and data centre capabilities across sectors.
