Tata Consultancy Services announces a strategic partnership with TPG for its AI data center division HyperVault. The investment company is contributing up to €97 million in exchange for a stake of between 27.5 and 49 percent.
HyperVault focuses on large-scale AI infrastructure for hyperscalers and AI-driven organizations. The goal is to build data centers with a capacity of more than 1 gigawatt. These facilities must be equipped with high rack density, energy efficiency, and network connectivity in all major cloud regions.
TCS works closely with hyperscalers and AI companies to design, roll out, and optimize AI infrastructure. The company already offers a complete range of AI solutions, ranging from AI data centers and cloud to AI platforms and sector-specific solutions.
Focus on India
India currently has a data center capacity of approximately 1.5 gigawatts. This capacity is expected to increase to more than 10 gigawatts by 2030. Since 2019, the Indian data center market has attracted nearly €81.5 billion in investments.
N. Chandrasekaran, Chairman of TCS, comments: “I am delighted that TPG is joining us in our mission to build large-scale, gigawatt-level AI data centers in India.” He emphasizes that TCS is uniquely positioned to offer complete AI solutions to customers and partners.
Investment structure
HyperVault is being financed through a mix of TCS and TPG equity, supplemented by funds from external financiers. Both partners are jointly investing approximately €198 million over the coming years. Of this total investment, TPG is contributing up to €97 million.
Jim Coulter, Chairman of the Board of Directors of TPG and Managing Partner of TPG Rise Climate, says: “We look forward to working with TCS because they share our vision and commitment to innovation and sustainability.” He cites data centers as a versatile asset class at the intersection of green energy infrastructure, technology, and real estate.
Strategic collaboration
TPG’s investment is being made through TPG Rise Climate and the Global South Initiative. TPG is also participating through its Asia Real Estate activities.
Read also: Inside TCS’ digital race behind Formula E