TCS partners with TPG to scale Up HyperVault AI data centre business

Tata Consultancy Services (TCS) announced a strategic partnership with global alternative asset manager TPG to accelerate the growth of its AI-focused data centre business, HyperVault.

The move marks a major step in TCS ambition to become the worlds largest AI-led technology services provider.

The investment will support HyperVaults plan to build gigawatt-scale, AI-ready data centre infrastructure, aligning with TCS broader strategy to set up data centres with capacity exceeding 1 GW in the coming years.

HyperVault will be funded through a mix of equity from TCS and TPG, along with debt. Both partners will jointly invest up to Rs 18,000 crore over the next few years. Of this, TPG will contribute up to Rs 8,820 crore and is expected to hold a final stake between 27.5% and 49% in HyperVault.

 

TCS said bringing TPG on board as a strategic partner will help the company enhance shareholder returns, reduce capital outlay, and drive long-term value creation for its data centre platform.

TPGs investment is being routed through TPG Rise Climate and its Global South Initiative, a private equity strategy developed in partnership with ALTRA. The deal also involves participation from TPGs Asia Real Estate business, marking a significant expansion of the platforms presence in India.

The partnership underscores rising global demand for AI-ready digital infrastructure and Indias emergence as a competitive hub for high-density data centre investments.

N.Chandrasekaran, Chairman, TCS, commented, I am delighted to have TPG join us in our journey to build large GW-scale AI data centers in India, tapping the rapidly growing AI demand. It will further strengthen our partnership with hyperscalers and AI companies. With this capability, TCS is uniquely positioned to deliver complete AI solutions for its customers and partners. We are excited and committed to play a leading role in creating world-class AI infrastructure and solutions for the industry and work towards making TCS the largest AI-led technology services company.

Jim Coulter, Executive Chairman of TPG and a Managing Partner of TPG Rise Climate, said, We are excited to partner with TCS and are grateful for our long-standing partnership with the Tata Group, both who share our vision and commitment to innovation and sustainability. Data centers are a multifaceted asset class and sit at the intersection of green energy infrastructure, technology and real estate. We look forward to bringing TPGs sectoral expertise across these asset classes and working together with TCS to drive Indias next wave of digital infrastructure innovation in a climate-positive manner and build a more resilient future for the countrys digital and data economy.

TCS is a digital transformation and technology partner of choice for industry-leading organizations worldwide.

The IT major's consolidated net profit declined 5.37% to Rs 12,131 crore in Q2 FY26 as against Rs 12,819 crore reported in Q1 FY26. Revenue from operations grew by 3.72% quarter on quarter (QoQ) to Rs 65,799 crore.

On a year-on-year (YoY) basis, the IT firm's net profit increased 1.47%, and net sales grew by 2.4% in the quarter ended 30 September 2025.

Shares of Tata Consultancy Services rose 0.29% to Rs 3,155 on the BSE.

Powered by Capital Market - Live News