Monday, December 22, 2025
Tata Consultancy Services (TCS) has announced a major strategic collaboration with TPG, a global leader in alternative asset management, to accelerate the expansion of its AI-focused data center business, HyperVault. This partnership marks a pivotal step in TCS’ broader vision to build one of the world’s largest networks of AI-ready data centers, each designed to support gigawatt-scale infrastructure as demand for artificial intelligence continues to rise.
Through this partnership, HyperVault will receive funding through a combination of equity from both companies along with debt financing. Together, TCS and TPG aim to invest up to Rs 18,000 crore over the coming years. As part of this commitment, TPG plans to contribute up to Rs 8,820 crore, ultimately securing a shareholding of 27.5% to 49% in HyperVault. By onboarding TPG as a strategic partner, TCS expects to strengthen shareholder value, reduce upfront capital expenditure, and build a long-term growth engine around scalable, AI-powered infrastructure.
Moreover, TPG’s investment comes through TPG Rise Climate and the Global South Initiative—a private equity strategy created in partnership with ALTÉRRA. TPG’s Asia Real Estate business is also participating, making this an important milestone for the firm’s expanding presence in India’s fast-growing digital infrastructure market.
Expressing optimism about the partnership, N. Chandrasekaran, Chairman of TCS, said, “I am delighted to have TPG join us in our journey to build large GW-scale AI data centers in India, tapping the rapidly growing AI demand…”
Jim Coulter, Executive Chairman of TPG, also highlighted the shared vision, stating, “We are excited to partner with TCS and are grateful for our long-standing partnership with the Tata Group…”
As AI adoption accelerates across industries, the need for robust and scalable AI-ready data centers has become more critical than ever. These facilities provide the high-performance compute, low-latency networks, and vast storage capacity required to run advanced AI models in real time. Today, India’s data center capacity stands at approximately 1.5 GW, but industry projections indicate it could surpass 10 GW by 2030. Since 2019 alone, nearly $94 billion has been invested in India’s data center ecosystem, underscoring the market’s explosive growth.
HyperVault aims to lead this transformation by offering secure, energy-efficient, purpose-built AI data centers equipped with liquid cooling, high rack densities, and connectivity across major cloud regions. TCS will collaborate closely with hyperscalers and AI companies to design, deploy, and optimize AI infrastructure, enabling seamless delivery of AI services at scale.
With its deep partnerships, strong cloud capabilities, and comprehensive suite of AI solutions, TCS continues positioning itself as a global leader in AI-first transformation. The transaction is currently awaiting statutory approvals and fulfillment of necessary conditions.
To join our expert panel discussions, reach out to info@intentamplify.com
Recommended News
Tags:
Conservation X Labs and Meta release the largest open dataset of annotated wildlife camera trap videos, featuring 10,000 clips and nearly 100 species worldwide.
Ringover’s Pitch Room uses AI to simulate real sales calls, offering custom personas, real-time feedback, and performance analysis to train teams at scale.
