Tata Consultancy Services has struck one of India’s biggest digital infrastructure deals, teaming up with American private equity TPG to accelerate the expansion of its AI-focused data centre business, HyperVault.
The partnership comes as India braces for an unprecedented surge in high-density compute demand from hyperscalers, global AI players and domestic enterprises—an opportunity TCS is positioning itself to own at scale.
Under the agreement announced on Thursday, the two companies will jointly invest up to Rs 18,000 crore over the next few years to build gigawatt-scale data centres designed specifically for AI workloads. The capital infusion will be a mix of equity, compulsorily convertible preference shares and additional debt.
TPG will bring in up to Rs 8,820 crore, while TCS will contribute the remainder to maintain a 51:49 structure. Depending on the investment sequence, TPG’s stake in HyperVault will range between 27.5 and 49%. The transaction will be completed in tranches, subject to conditions precedent and statutory clearances.
TCS aims to build liquid-cooled, energy-efficient data centres that can support demanding AI and high-performance computing deployments—capacity that traditional hosting facilities cannot provide at scale. The company sees these assets as central to India’s ambition to grow domestic AI capability while ensuring compute and sensitive data remain within national borders.
TCS Chairman N Chandrasekaran said the collaboration enhances the company’s ability to scale next-generation AI infrastructure and strengthens ties with global AI players and hyper-scalers. “We are excited to build large GW-scale AI data centres in India, tapping rapidly growing AI demand, and to position TCS as the world’s largest AI-led technology services company,” he said.
Jim Coulter, executive chairman of TPG and managing partner of TPG Rise Climate, said data centres sit at the intersection of technology, green energy and real estate—sectors where TPG brings deep expertise. The investment is being channelled through TPG Rise Climate, its Global South Initiative (in partnership with ALTÉRRA), and its Asia Real Estate platform. “We look forward to driving India’s next wave of digital infrastructure innovation in a climate-positive manner,” he said.
The partnership delivers both capital and sectoral depth at a time when AI-driven compute requirements are reshaping the economics of data infrastructure, positioning TCS to take a leading role in India’s digital future.