TPG invests USD 1 billion in TCS Hypervault Hyderabad plan
HYDERABAD: TCS on Thursday announced a partnership with private equity major TPG for its upcoming AI-focused data centre platform, Hypervault. Both partners will invest a combined equity of about ₹18,000 crore, with major capacity planned in Hyderabad, Navi Mumbai and Chennai.
TPG to hold up to 49% stake
TPG will be the sole equity partner and invest USD 1 billion (around ₹8,820 crore). It will hold between 27.5% and 49% in the venture. The total project cost for the 1GW rollout is estimated at USD 6.5 billion (around ₹57,600 crore), with the remainder funded through debt.
The plan was announced 40 days after TCS declared its entry into the data centre sector. The facilities will be distributed across Hyderabad, Navi Mumbai and Chennai, with land sourced from TCS, the Tata Group or through fresh acquisitions. The rollout is targeted over five years.
Both sides to infuse USD 2 billion equity
TCS chief executive and managing director K Krithivasan said both partners will infuse USD 2 billion in core equity. He said the venture has no plan to bring in any additional equity partner.
TCS said TPG’s participation will help drive shareholder returns, reduce capital outlay and build long-term value for the platform.
Tata Sons chairman N Chandrasekaran said, “I am delighted to have TPG join us in our journey to build large GW-scale AI data centres in India, tapping the rapidly growing AI demand. It will further strengthen our partnership with hyperscalers and AI companies.”
Krithivasan said TCS already works with hyperscalers such as Amazon Web Services and enterprise clients using AI infrastructure, giving it a “right to win” as an end-to-end provider.
Hyderabad among key hubs for AI infrastructure
India’s current data centre capacity of 1.5GW is expected to rise to 10GW by 2030, drawing more than USD 94 billion in investments so far. Hyderabad is expected to be a major hub in the upcoming Hypervault network due to demand from cloud players and AI firms.
Krithivasan said capacity creation will track market demand, with some ahead-of-curve investments. The platform will start with passive data centres and may expand if opportunities arise.
TPG executive chairman Jim Coulter said data centres sit at the intersection of green energy, technology and real estate. The investment is being made through TPG Rise Climate and the Global South Initiative.
Both partners have agreed to a three-year lock-in. On Thursday, the TCS stock closed 0.05% lower at ₹3,145.75 on the BSE even as the benchmark gained 0.52%.
