TCS and TPG team up for $2B AI data center push in India
Tata Consultancy Services (TCS) and investment firm TPG are joining forces to launch HyperVault AI Data Centre Ltd, aiming to build next-gen AI and sovereign data centers across India.
The new company, set up in late October, kicks off with $2 billion in equity—TCS holds a 51% stake—and plans to raise another $4.5-$5 billion through debt.
What's the big plan?
HyperVault wants to add 1.2 gigawatts of data center capacity over the next five to seven years—that's as much as all of India has right now.
Backed by a total investment of around $6.5-7 billion, they'll offer space and services for tech giants, government projects, enterprises, and Tata Group companies.
They expect to start making money within two years, with services offered to hyperscalers, enterprises, government entities, and Tata Group companies.
Why does this matter for TCS?
This is a whole new playbook for TCS—it's their first time partnering with an outside investor on such a big scale.
It also marks a shift from their usual low-investment approach toward something much bigger and bolder financially.