Tata Consultancy Services and TPG Establish AI Data Centre Venture

Tata Consultancy Services (TCS), India's largest software exporter, has announced the formation of a joint venture with private equity firm TPG Terabyte Bidco Pte. Ltd. This partnership aims to develop multiple artificial intelligence (AI) and Sovereign Data Centres, marking a significant step in TCS's ambition to become the leading AI-driven technology services company globally. The announcement was made on Thursday, 20 November 2025.

The new venture, named HyperVault AI Data Centre Ltd, has been established as a wholly owned subsidiary of TCS. The collaboration will see both companies investing approximately Rs 18,000 crores, with TCS holding a 51 per cent stake and TPG taking 49 per cent. TPG's investment is set to reach up to Rs 8,820 crores, with the firm expected to have a shareholding ranging between 27.5 per cent and 49 per cent in HyperVault.

N. Chandrasekaran, Chairman of TCS, expressed his enthusiasm about the partnership, stating, "I am delighted to have TPG join us in our journey to build large GW-scale AI data centres in India, tapping the rapidly growing AI demand. It will further strengthen our partnership with hyperscalers and AI companies."

The joint venture is positioned to support the development of infrastructure capable of handling both AI and non-AI workloads. With India's growing demand for AI solutions, TCS aims to create facilities that exceed one gigawatt (GW) in capacity over the next few years. Currently, India has a data centre capacity of approximately 1.5 GW, which is projected to surpass 10 GW by 2030, according to industry estimates.

The partnership comes at a time when India's data centre market has seen significant growth, attracting nearly $94 billion in investments since 2019. TCS plans to work closely with hyperscalers and AI companies to design and optimise AI infrastructure, enhancing service delivery in this rapidly evolving field.

The newly established HyperVault Data Centre will feature purpose-built, liquid-cooled systems with high rack densities and energy efficiency, ensuring robust network connectivity across major cloud regions. This initiative marks TPG's third collaboration with the Tata Group, following previous partnerships with Tata Motors' electric vehicle arm and Tata Technologies.

This joint venture also represents a notable shift for TCS, which will be engaging with external equity from a private equity firm for the first time, alongside external debt. The partnership is expected to significantly bolster TCS's capabilities in delivering comprehensive AI solutions, reinforcing its position in the global technology landscape.