 "This is the first time that TCS has taken a bet on a capex-heavy industry. The firm has historically preferred to build businesses organically rather than look for acquisitions.")
India’s largest information technology services firm, Tata Consultancy Services (TCS), on Thursday said it has secured $1 billion from global alternative asset manager TPG to accelerate its data centre business, HyperVault. With this, the company has finally taken a bold bet on the data centre space, sharpening its ambition to become the largest artificial intelligence (AI)-ready technology services player.
Together, TCS and TPG will commit up to ₹18,000 crore over the next few years. Of this, TPG will invest up to ₹8,820 crore (around $1 billion) and is expected to hold between 27.5 per cent and 49 per cent in HyperVault.
HyperVault will be funded through a mix of equity from TCS and TPG, along with debt.
TCS said in a statement that bringing in TPG as a strategic partner will help drive stronger shareholder returns, reduce capital outlay, and create long-term value for the data centre platform.
TCS’ cash reserves as of September 30 stood at ₹1.06 trillion (around $12 billion). The firm’s total debt is ₹10,932 crore.
Also Read
 "HDFC Bank")
 "TCS")
 "TCS, Tata Consultancy Services")
 "Midcap, market capitalisation, Mutual Funds, Amfi, The Smart Investor, Markets, mcap")
 "Stocks to watch, November 6")
This is the first time TCS has taken a bet on a capital expenditure-heavy business. The firm has historically preferred to build organically rather than pursue acquisitions. Its last major acquisition was Citigroup Global Services in 2008 for $512 million.
Following its second-quarter 2025-26 results, the company announced its intention to enter the data centre segment. Management had then said it planned to build 1 gigawatt (Gw) of capacity, requiring an investment of $6.5–7 billion.
N Chandrasekaran, chairman of TCS, said in a statement, “I am delighted to have TPG join us in our journey to build large Gw-scale AI data centres in India, tapping into the rapidly growing AI demand. It will further strengthen our partnership with hyperscalers and AI companies.”
He added that this capability uniquely positions TCS to deliver complete AI solutions for customers and partners. “We are excited and committed to playing a leading role in creating world-class AI infrastructure and solutions for the industry and working towards making TCS the largest AI-led technology services company.”
India currently has about 1.5 Gw of data centre capacity, a figure expected to exceed 10 Gw by 2030. Industry estimates suggest India’s data centre market has attracted nearly $94 billion in investments since 2019.
Jim Coulter, executive chairman of TPG and managing partner of TPG Rise Climate, said, “We are excited to partner TCS and are grateful for our long-standing partnership with Tata Group, who share our vision and commitment to innovation and sustainability.” TPG has previously worked with Tata Motors and Tata Technologies.
“Data centres are a multifaceted asset class and sit at the intersection of green energy infrastructure, technology, and real estate. We look forward to bringing TPG’s sectoral expertise across these asset classes and working with TCS to drive India’s next wave of digital infrastructure innovation in a climate-positive manner and build a more resilient future for the country’s digital and data economy,” Coulter said.
With the TCS–TPG collaboration, TCS joins the growing list of Indian firms looking to tap the booming data centre segment. Companies such as Reliance, Adani, and Google have announced investments and expansion plans, alongside players like NTT Data, Sify, and CtrlS.
Earlier this month, Google announced a $15 billion investment to set up a 1 Gw AI data centre in Visakhapatnam over the next five years.
 "Zepto")
 "KKR & Co")
 "apple air")
 "IL&FS, Infrastructure Leasing and Financial Services, Mumbai")
 "Mahindra Holidays & Resorts")
