Mumbai: Tata Consultancy Services (TCS), the country’s largest IT services firm, on Thursday announced a partnership with global private equity major TPG for its upcoming AI-focused data centre venture, ‘Hypervault’. The two partners will jointly infuse around Rs 18,000 crore in equity into the new business.
TPG will be the sole equity partner, investing $1 billion (about Rs 8,820 crore) for a 27.5–49 per cent stake. The tie-up comes just weeks after TCS unveiled its foray into the data centre space with plans to build 1 GW of capacity requiring about $6.5 billion (Rs 57,600 crore) in investment.
The company plans to set up facilities in Navi Mumbai, Hyderabad and Chennai over the next five years. The land parcels may come from TCS, the Tata Group, or be newly acquired. TCS CEO and MD K Krithivasan told PTI that the partners will contribute a combined $2 billion in equity, while the remaining requirement will be financed through debt. He reiterated that TPG will remain the only equity investor.
TCS said the partnership will help reduce capital intensity, enhance shareholder returns and strength-en the value proposition of the Hypervault platform. Tata Sons Chairman N Chandrasekaran said the collaboration will allow TCS to tap soaring AI demand and bolster its partnerships with hyperscalers and AI companies. The company believes its existing relationships with cloud providers, including AWS, and its AI capabilities position it strongly to capture market demand.
India’s data centre sector has been drawing significant interest due to data localisation requirements and rising digital consumption, prompting major conglomerates such as Reliance and Adani to an-nounce GW-scale plans. Krithivasan stressed that TCS views the venture not as a real estate play but as a synergistic business that leverages the Tata Group’s strengths in renewable energy, real estate, con-struction and subsea infrastructure.
TPG Executive Chairman Jim Coulter said data centres sit at the intersection of green energy, technol-ogy and real estate, making them a multifaceted asset class. TPG’s investment will be channelled through TPG Rise Climate and its Global South Initiative, alongside support from its Asia Real Estate business.