TCS Secures $1 Bn Investment from TPG to Accelerate AI Data Center Business

Tata Consultancy Services (TCS) one of the global leaders in IT services, consulting and business solutions has announced a strategic partnership with TPG a global alternative asset management firm to support the growth of its AI data center business, HyperVault.

The investment will help HyperVault's GW-scale AI-ready infrastructure build and align with TCS's plans to create AI-ready data centers with a capacity exceeding a GW over the next few years.

According to a press release the HyperVault will be funded through a combination of equity from TCS and TPG, as well as debt. With both parties combined the total commitment will be up to INR 18,000 crore over the next few years.

Out of the total commitment TPG will invest up to INR 8,820 crore and will have a final shareholding between 27.5 per cent and 49 per cent in HyperVault. TPG's investment is being facilitated through TPG Rise Climate and its Global South Initiative a private equity strategy launched in partnership with ALTÉRRA. TPG is also partnering through its Asia Real Estate business marking an important milestone for the platform in India.

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 TPG's sectoral expertise across these asset classes and working together 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."

TCS was advised by AZB & Partners as legal counsel and Deloitte Touche Tohmatsu India LLP as tax advisors. TPG was advised by Cyril Amarchand Mangaldas and Latham & Watkins LLP as legal counsel and Price Waterhouse & Co. LLP as tax advisors.