Tata Consultancy Services (TCS) is joining forces with global private equity firm TPG to create a major joint venture aimed at establishing gigawatt-scale, AI-ready data centers in India. Dubbed HyperVault, the new venture will build data centers using a mix of equity and debt, with TCS and TPG together committing up to ₹18,000 crore over the coming years.
Key Highlights
- TCS partners with TPG to build gigawatt-scale AI data centres via their JV HyperVault.
- JV will invest ₹18,000 crore to create sovereign cloud and model-as-a-service infrastructure in India.
Under the deal, TCS will hold a majority 51% stake, while TPG is expected to take between 27.5% and 49%. The data centers are being designed to support not just public cloud needs but also model-training workloads for AI companies, offering secure sovereign cloud, “model-as-a-service” and colocated infrastructure for hyperscalers, government entities, and enterprises.
According to TCS leadership, they plan to roll out the first phase of these high-capacity facilities within 18–24 months, with a full 1-gigawatt capacity target over the next five to seven years. The JV will be managed as a separate business unit to ensure dedicated focus and operational efficiency.
TPG’s investment is being channelled through its “TPG Rise Climate” fund and its Global South Initiative, highlighting ESG (environmental, social, and governance) considerations in the construction and operation of these data centers. TCS Chairman N. Chandrasekaran noted that this expansion will allow TCS to deliver “complete AI solutions” — not just software and services, but the underlying compute infrastructure as well.
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This move marks a strategic pivot for TCS, which has traditionally followed a capital-light model. By building its own large-scale data center infrastructure, Tata Consultancy Services is aiming to become a leading AI-centric technology services provider and capture a bigger share of the booming AI compute market.
