TCS has secured a $1 billion investment from global alternative asset manager TPG to accelerate the expansion of HyperVault, its AI data centre business that aims to build gigawatt-scale, AI-ready digital infrastructure across India.
The deal marks one of the largest private investments into India’s data centre ecosystem and is a critical step in TCS’ plan to become what it calls the world’s largest AI-led technology services company. The company aims to set up AI data centre capacity exceeding one gigawatt over the next few years.
HyperVault will be funded through a mix of equity from TCS and TPG, and debt. Both partners together will commit up to ₹18,000 crore, of which TPG will invest up to ₹8,820 crore.
Depending on the final structure at closing, TPG is expected to hold between 27.5% and 49% in the venture. TPG’s investment is being made through its climate-focused platform TPG Rise Climate and the Global South Initiative, along with its Asia real estate business.
TCS chairman N Chandrasekaran said the partnership will help the company quickly build large-scale AI data centres to serve the rising demand from hyperscalers and AI companies.
He said the capability positions TCS to deliver “complete AI solutions” for global customers and strengthens its ambition to lead in AI-led services.
Jim Coulter, executive chairman of TPG, said data centres sit at the intersection of green energy infrastructure, technology, and real estate, and described the partnership as an opportunity to help build India’s next wave of digital infrastructure “in a climate-positive manner.”
India’s data centre market, currently around 1.5 GW of installed capacity, is projected to cross 10 GW by 2030. Industry estimates show nearly $94 billion has flowed into the segment since 2019, driven by cloud adoption, AI workloads, and hyperscaler expansion.
TCS said HyperVault will offer secure, liquid-cooled, high-density AI data centres with energy-efficient designs and connectivity across major cloud regions. It will work closely with hyperscalers and AI companies to design, deploy, and optimise AI infrastructure for large-scale, real-time applications.
The company said its broader AI strategy spans AI data centres, cloud platforms, AI-led IT services and industry-specific solutions. AZB & Partners and Deloitte advised TCS on the transaction, while TPG was represented by Cyril Amarchand Mangaldas, Latham & Watkins, and Price Waterhouse & Co LLP. The deal is subject to customary approvals.
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