In a major boost to India’s emerging AI infrastructure ecosystem, Tata Consultancy Services (TCS) has announced that global investment firm TPG will invest up to $1 billion (Rs 8,820 crore) in its next-generation AI data-center platform, HyperVault. The deal positions TCS at the forefront of the global race to build scalable, energy-efficient infrastructure for artificial intelligence and high-performance computing.
HyperVault is TCS’s landmark initiative designed specifically to support AI-driven workloads, cloud computing, and next-generation enterprise applications. Unlike conventional data centers, HyperVault is engineered with liquid cooling, high-density server racks, and ultra-low-latency connectivity, enabling it to handle the heavy demands of large language models, generative AI applications, and complex analytics.
As businesses accelerate digital transformation, the need for specialised AI-ready infrastructure has grown sharply. HyperVault aims to fill that gap by providing a robust, energy-efficient foundation capable of powering enterprise-scale AI adoption.
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Under the newly announced partnership, TPG will invest $1 billion (Rs 8,820 crore), giving it an equity stake between 27.5% and 49% in HyperVault, depending on the final investment structure. TCS will contribute to the remainder through equity and internal funds. The total commitment, estimated at $2 billion (Rs18,000 crore), marks one of the largest investments in India’s data-center landscape.
TCS Chairman N. Chandrasekaran said the collaboration will strengthen TCS’s capabilities across the AI value chain, from infrastructure and cloud to platforms and industry solutions. By owning and operating specialised AI data-centers, TCS aims to differentiate itself from global competitors that rely largely on third-party facilities.
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The announcement comes at a time when India’s data-center market is expanding rapidly. With about 1.5 GW of installed capacity today, the industry is expected to cross 10 GW by 2030, driven by rising cloud adoption, AI innovations, and government-led digital initiatives.
HyperVault is expected to play a pivotal role in this growth story, offering enterprises and hyperscalers access to state-of-the-art compute power. The investment also aligns with India’s broader ambition to become a major global hub for AI development, research, and enterprise solutions.
This investment forms part of TPG’s Rise Climate initiative, which supports sustainable digital infrastructure across the Global South. With AI workloads consuming significantly more power than traditional applications, HyperVault’s energy-efficient design is a key attraction for TPG.
For the investment firm, the partnership is both a strategic and environmental commitment, linking long-term digital growth with responsible energy use.
Despite the strong momentum, TCS will face a series of execution hurdles, including regulatory clearances for new data-center parks, ensuring access to renewable power, maintaining energy efficiency at scale, and competing with global hyperscalers rapidly building their own AI-ready campuses.
However, TCS remains confident in HyperVault’s potential. The company plans to roll out multiple AI-centric campuses over the next few years, in collaboration with cloud providers, technology partners, and enterprise clients. If successful, HyperVault could redefine India’s AI infrastructure landscape and establish TCS as a global leader in integrated AI solutions.
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