TCS, TPG Finalise ₹18,000 Crore Deal to Build Over 1 GW of AI-Ready Data Centres

21 Nov 2025 , 10:07 AM

Tata Consultancy Services said it has finalised agreements with TPG Terabyte Bidco for a significant investment of up to ₹18,000 crore in HyperVault, its data centre subsidiary focused on artificial intelligence.

The investment will be infused over the next few years. TCS explained in its stock exchange filing that the funds will come through equity and compulsorily convertible preference shares.

TCS and TPG will contribute in a 51 to 49 ratio. As part of this structure, TPG is set to invest up to ₹8,820 crore in HyperVault. Depending on how the investment progresses, TPG is expected to eventually hold between 27.5 percent and 49 percent in the subsidiary. TCS confirmed that its investment committee approved the arrangement during its meeting on Thursday.

HyperVault will operate as the exclusive entity for all of TCS’ AI and non AI data centre operations. The plan is to build more than 1 gigawatt of AI ready capacity across India.

Industry estimates show that India’s data centre market could grow to more than 10 gigawatts by 2030, compared with the current base of about 1.5 gigawatts. TCS expects the partnership with TPG to ease its capital investment burden while strengthening relationships with hyperscalers and AI technology companies.

The company believes the collaboration will support its long term goal of becoming a major AI driven services provider. The transaction will move ahead once standard conditions and regulatory approvals are completed.

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