TCS secures 1Bn deal from TPG to scale HyperVault AI data centres across India

Tata Consultancy Services (TCS) has secured a Rs 8,820 crore (USD 1 billion) investment from global private equity firm TPG to accelerate the growth of its AI data centre business, HyperVault. The capital infusion will support TCS’ ambition to develop data centres with more than 1 gigawatt (GW) of capacity over the next few years, placing it among the top contenders in the race to build AI-ready infrastructure in India.

The announcement marks a significant move by TCS to cement its leadership in AI-led technology services. The total funding commitment of up to Rs 18,000 crore will be raised through a mix of equity and debt, with TPG taking an anticipated shareholding of 27.5% to 49% in the new venture.

“I am delighted to have TPG join us in our journey to build large GW-scale AI data centres in India,” said N. Chandrasekaran, Chairman, TCS. “With this capability, TCS is uniquely positioned to deliver complete AI solutions for its customers and partners.”

HyperVault’s value proposition: Liquid-cooled, high-density, AI-optimised

HyperVault will focus on purpose-built, liquid-cooled data centres with high rack density and energy efficiency, designed to meet the demands of hyperscalers, AI companies, enterprises, and public sector clients. These centres will enable real-time compute performance and low-latency networking required to run large-scale AI workloads.

The move comes as India's current 1.5 GW data centre capacity is forecast to grow to more than 10 GW by 2030. The sector has already attracted over USD 94 billion in investments since 2019, and TCS is betting big on riding the next wave of AI-fueled infrastructure demand.

TPG brings climate, tech, and real estate muscle to the table

TPG's investment will come through its Rise Climate fund and Global South Initiative, backed by ALTÉRRA, and supplemented by its Asia Real Estate division. The partnership is not only financial, it brings expertise across green energy, real estate, and technology ecosystems.

“Data centres are a multifaceted asset class,” said Jim Coulter, Executive Chairman of TPG and Managing Partner of TPG Rise Climate. “They sit at the intersection of green energy infrastructure, technology, and real estate. We’re excited to support TCS in building climate-positive infrastructure and driving India’s digital future.”

A platform for full-stack AI transformation

HyperVault forms part of TCS’ broader AI-first vision, which includes data centres, AI platforms, cloud services, AI-led IT modernisation, and industry-specific AI solutions. The company is working closely with hyperscalers to co-design and optimise infrastructure that supports end-to-end delivery of AI services.

The partnership is structured to reduce capital burden on TCS while enhancing shareholder returns through a shared investment model.

TCS was advised by AZB & Partners and Deloitte Touche Tohmatsu India LLP, while TPG’s advisors included Cyril Amarchand Mangaldas, Latham & Watkins LLP, and Price Waterhouse & Co. LLP.

The transaction remains subject to regulatory approvals and closing conditions.