Tata Consultancy Services (TCS) has announced a strategic partnership with TPG, a leading global alternative asset management firm, to support the growth of its AI data center business, HyperVault.

Investment Structure and Financial Details

TCS' HyperVault will be funded through a mix of equity from TCS and TPG, and debt. Both partners combined will commit to invest up to INR 18,000 crore over the next few years. Out of the total commitment of up to INR 18,000 crore, TPG will invest up to INR 8,820 crore and is envisaged to have final shareholding between 27.5% and 49% in HyperVault.

TPG's investment in HyperVault is being facilitated through TPG Rise Climate and its Global South Initiative, a private equity strategy launched in partnership with ALTÉRRA. Additionally, TPG is also partnering through its Asia Real Estate business, marking an important milestone for the platform in India.

HyperVault's AI Infrastructure Goals

HyperVault aims to establish AI data centers with capacity exceeding 1 GW to address the growing need for AI-ready data centers. This investment will support HyperVault's GW-scale AI-ready infrastructure build and aligns with TCS' plan to create AI-ready data centers with capacity exceeding a GW over the next few years.

TCS' HyperVault will deliver secure, reliable, large-scale AI-ready infrastructure for hyperscalers and AI-driven organizations. It will offer purpose-built, liquid-cooled data centers with high rack densities, energy efficiency, and network connectivity across all key cloud regions. TCS will work closely with hyperscalers and AI companies to design, deploy, and optimize AI infrastructure to enable world-class service delivery of AI services.

Market Context and Industry Demand

With AI demand surging, AI-data centers play a crucial role by providing the necessary infrastructure to hyperscalers, AI companies, private enterprises and the public sector, for hosting their compute hardware, high-speed storage, and low-latency networks needed to run real-time, large-scale AI models and applications across industries.

India currently has a data center capacity of about 1.5 GW, which is expected to exceed 10GW by 2030. According to industry estimates, India's data center market has attracted nearly USD 94 billion in investments since 2019.

Leadership Statements and Strategic Vision

N. Chandrasekaran, Chairman of TCS, commented on the partnership: “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. It will further strengthen our partnership with hyperscalers and AI companies. With this capability, TCS is uniquely positioned to deliver complete AI solutions for its customers and partners.

We are excited and committed to play a leading role in creating world-class AI infrastructure and solutions for the industry and work towards making TCS the largest AI-led technology services company.”

Jim Coulter, Executive Chairman of TPG and a Managing Partner of TPG Rise Climate, stated: “We are excited to partner with TCS and are grateful for our long-standing partnership with the Tata Group, both who share our vision and commitment to innovation and sustainability. Data centers are a multifaceted asset class and sit at the intersection of green energy infrastructure, technology and real estate.

We look forward to bringing TPG's sectoral expertise across these asset classes and working together with TCS to drive India's next wave of digital infrastructure innovation in a climate-positive manner and build a more resilient future for the country's digital and data economy.”

This partnership marks a significant milestone in TCS' ambition to become the largest AI-led technology services company. Bringing in TPG as a strategic investment partner will help TCS deliver stronger returns to shareholders, reduce capital outlay, and create long-term value for the data center platform.

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