Advertisement
TCS and TPG are joining forces to create HyperVault AI Data Centre, with a combined equity investment of 180 billion INR (USD 2.03 billion). The companies plan to raise additional debt funding of USD 4.5-5 billion. TCS will hold a 51% stake and TPG 49%, supporting India's growing AI data infrastructure. Analysts note the venture aligns with global trends of tech firms partnering with private equity to share risks, while TCS's previous announcement of a USD 7 billion investment in a data centre drew investor skepticism due to limited alignment with its core IT services.
Tata Consultancy Services (TCS) and private equity firm TPG have announced a joint venture to build AI-focused data centres in India. Both partners will contribute a combined 180 billion INR (around USD 2.03 billion) in equity to the venture, named HyperVault AI Data Centre. The capital will be invested in stages over the coming years. Advertisement
In addition to equity, the companies plan to raise between USD 4.5 billion and USD 5 billion through debt, although specific details about the number or locations of the proposed data centres were not disclosed. The announcement comes amid a global surge in artificial intelligence adoption, which has significantly increased demand for data storage and computing infrastructure.
India's data centre capacity is projected to more than triple, reaching 4.5 gigawatts by 2030, according to real estate consultancy Colliers. TCS will hold a 51% stake in the joint venture, while TPG will own the remaining 49% and invest up to 88.20 billion INR.
Pareekh Jain, founder of tech advisory firm EIIR Trend, said that the model resembles strategies used by global tech companies such as Meta, which collaborate with private equity firms to share risks. He noted that TPG could benefit from storing data for its portfolio companies, and if the venture succeeds, TCS may replicate the model internationally.
This move follows TCS's announcement last month of plans to invest up to USD 7 billion in a 1 GW data centre unit. Analysts had expressed concerns over the plan, pointing out its limited connection with TCS's core IT services and the potential pressure it could place on returns. Brokerage firm BobCaps described the move as 'negatively surprising,' noting it marked a shift from TCS's traditional focus on organic growth toward a more aggressive merger and acquisition approach.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
