Tata Consultancy Services (TCS) has partnered with TPG, securing a $1 billion investment to expand its AI data center business, HyperVault. The initiative aims to establish GW-scale AI-ready facilities. TPG will invest up to ₹8,820 crore. The partnership aligns with TCS’ strategy to lead in AI technology services by building infrastructure and reinforces the commitment to innovation and sustainable digital growth.
Strategic Partnership with TPG
Tata Consultancy Services (TCS) announced a strategic partnership with TPG, a global alternative asset management firm. This partnership, announced on November 20, 2025, involves a significant investment from TPG to bolster TCS’ AI data center business, HyperVault.
HyperVault’s Expansion Plans
HyperVault is focused on establishing AI data centers with a capacity exceeding one gigawatt (GW). This expansion is aimed at addressing the increasing demand for AI-ready data centers and solidifying TCS’ position as a leader in AI-driven technological advancements.
Investment Details
The funding for TCS’ HyperVault will come from a mix of equity contributed by both TCS and TPG, in addition to debt financing. The combined investment commitment from both partners is up to ₹18,000 crore over the next few years. TPG’s investment will reach up to ₹8,820 crore. TPG is expected to have final shareholding between 27.5% and 49% in HyperVault.
TPG Rise Climate Initiative
TPG’s investment in HyperVault is being facilitated through TPG Rise Climate and its Global South Initiative, partnering with ALTÉRRA and its Asia Real Estate business, highlighting the sustainability and climate-conscious aspects of the project.
Leadership Statements
N. Chandrasekaran, Chairman, TCS, stated the partnership will further strengthen TCS’ ability to deliver complete AI solutions for customers and partners and committed to playing a leading role in creating world-class AI infrastructure. Jim Coulter, Executive Chairman of TPG, expressed excitement about partnering with TCS and contributing to digital infrastructure innovation in a climate-positive manner.
AI Data Center Market Growth
The increasing demand for AI is driving the crucial role of AI-data centers. India’s data center capacity is expected to exceed 10GW by 2030. Since 2019, the data center market in India has attracted nearly $94 billion in investments.
Agreement Terms
TCS and TPG Terabyte have agreed to invest an aggregate amount of up to INR 180,00,00,00,000 (Indian Rupees Eighteen Thousand Crore) into HyperVault.
Source: BSE