TCS, TPG Partner for $2B AI Data Center Powerhouse

Tata Consultancy Services (TCS) has partnered with private equity firm TPG to invest USD 2 billion in developing gigawatt-scale AI data centres in India through a new joint venture, HyperVault.

As part of the partnership, TCS has secured USD 1 billion in equity investment from TPG. TCS will hold a 51% majority stake, while TPG will invest up to ₹8,820 crore for a 27.5–49% stake, depending on the final structure. The initiative supports TCS’s ambition to become the world’s leading AI-driven IT services company, bolstering its collaboration with hyperscalers and AI technology firms. The investment will significantly expand TCS’s AI infrastructure, enabling the company to offer end-to-end AI solutions to global clients.

“With this capability, TCS is now uniquely positioned to deliver complete AI solutions for its customers and partners,” said TCS Chairman N. Chandrasekaran. The AI data centre capacity will be built in phases, targeting 1 GW over the next five to seven years.

News by Rahul Yelligetti.