TCS, TPG to invest up to ₹18,000 crore in AI data centre unit HyperVault

Tata Consultancy Services (TCS) said on Thursday it has signed agreements with TPG Terabyte Bidco for an investment of up to ₹18,000 crore in its AI-focused data centre subsidiary HyperVault, as India races to build large-scale infrastructure to meet accelerating artificial intelligence demand.

The investment will be made over the next few years through equity and compulsorily convertible preference shares, with TCS and TPG investing in a 51:49 ratio, the IT major said in a stock exchange filing.

TPG will invest up to ₹8,820 crore and is expected to eventually hold between 27.5% and 49% in HyperVault. The deal was approved by TCS’ investment committee at a meeting on Thursday.

HyperVault will serve as the exclusive vehicle for TCS’ AI and non-AI data centre operations, and aims to build more than 1 GW of AI-ready capacity. India’s data centre market is projected to exceed 10 GW by 2030, from about 1.5 GW currently, industry estimates show.

TCS said the partnership with TPG is expected to lower its capital outlay, strengthen ties with hyperscalers and AI companies, and accelerate its ambition to become a leading AI-driven services provider.

The transaction is subject to customary conditions precedent and approvals.

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