Marking one of India’s largest bets on AI infrastructure, IT major Tata Consultancy Services (TCS) has secured $1 billion investment for its ambitious AI data-centre venture HyperVault from private-equity major TPG. The investment will support HyperVault’s GW-scale AI-ready infrastructure build. 

TCS’s HyperVault will be funded through a mix of equity from TCS and TPG, and debt. Both partners combined will commit to invest up to Rs 18,000 crore over the next few years. Out of the total commitment of up to Rs 18,000 crore, TPG will invest up to Rs 8,820 crore and is envisaged to have a 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. 

“I am delighted to have TPG join us in our journey to build large GW-scale AI data centres 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,” said N. Chandrasekaran, Chairman, TCS.

Jim Coulter, Executive Chairman of TPG and a Managing Partner of TPG Rise Climate, said, “Data centres 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.” 

With AI demand surging, AI-data centres play a crucial role by providing the necessary infrastructure to hyperscalers, AI companies, private enterprises and the public sector, for hosting their computer 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 centre capacity of about 1.5 GW, which is expected to exceed 10GW by 2030. According to industry estimates, India’s data centre market has attracted nearly $94 billion in investments since 2019.

TCS’s HyperVault will deliver large-scale AI-ready infrastructure for hyperscalers and AI-driven organisations. It will also offer purpose-built, liquid-cooled data centres with high rack densities, energy efficiency and network connectivity across all key cloud regions. TCS says it will work closely with hyperscalers and AI companies to design, deploy, and optimise AI infrastructure to enable world-class service delivery of AI services. 

Shares of TCS closed Tata Consultancy Services Ltd 0.067% up at Rs 3,149.80 on the BSE on Thursday.