India’s TCS, TPG Partner To Invest $2 Bn In AI Data Centers
- ByStartupStory | November 27, 2025
HyperVault JV Targets GW-Scale Infrastructure Amid Surging AI Demand
Tata Consultancy Services (TCS) has formed a strategic joint venture with global investment firm TPG to build gigawatt-scale AI data centers in India through HyperVault AI Data Centre Ltd, with both partners committing up to ₹18,000 crore ($2.1 billion) over the next few years. TPG will invest up to ₹8,820 crore ($1 billion), securing a 27.5-49% stake, while TCS holds majority control at 51%, funded through a mix of equity and debt.
Powering India’s AI Infrastructure Boom
HyperVault will deliver purpose-built, liquid-cooled data centers optimized for high rack densities, energy efficiency, and low-latency connectivity to support hyperscalers, AI firms, enterprises, and public sector needs. TCS Chairman N. Chandrasekaran emphasized the venture strengthens partnerships with AI leaders, positioning TCS as the largest AI-led technology services provider globally.
India’s data center capacity stands at 1.5 GW today but is projected to surpass 10 GW by 2030, attracting nearly $94 billion in investments since 2019 amid exploding AI compute demands. TPG Rise Climate Executive Chairman Jim Coulter highlighted the climate-positive approach, blending green energy, technology, and real estate expertise.
Strategic Timing And Market Leadership
This marks TPG’s third collaboration with Tata Group, following Tata Motors EV and Tata Technologies deals, underscoring confidence in India’s digital infrastructure surge. TCS will integrate HyperVault with its AI platforms, cloud services, and industry solutions to offer end-to-end AI transformation for clients worldwide.
As Reliance, Adani, and Google accelerate similar builds, TCS-TPG enters a competitive race to capture India’s multi-billion-dollar AI data center opportunity, driving job creation, digital sovereignty, and sovereign data capabilities.
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