TCS, TPG to Invest ₹180 Billion in HyperVault AI Data Centres

Tata Consultancy Services Ltd. on Thursday said it has signed an agreement with Singapore-based private equity firm TPG Terabyte Bidco Pte. Ltd. to jointly invest up to ₹180 billion in its wholly owned subsidiary, HyperVault AI Data Center Ltd. The investment will support the development, ownership, operation and management of data centres in India for both AI and non-AI workloads,TCS said in an exchange filing.

The investment will be made in a 51:49 split, with TPG Terabyte putting in up to ₹88.20 billion and TCS contributing about ₹91.80 billion. Once the transaction is completed, TPG Terabyte is expected to hold between 27.5% and 49% in HyperVault.

HyperVault will be funded through a mix of equity, including multiple tranches of compulsorily convertible preference shares from both partners, along with debt. TCS will retain control of the board and will appoint most of the directors, while TPG Terabyte will have the right to appoint up to two directors. Both investors will be subject to a three-year lock-in, with transfers allowed only to affiliates.

HyperVault will focus on offering secure, large-scale AI-ready infrastructure for hyperscalers and AI-led organisations. The company plans to build data centres with more than 1 GW capacity, featuring liquid-cooled, high-density racks, strong energy efficiency and network connectivity across key cloud regions. This follows TCS’s October announcement to develop AI data centres in India with 1 GW capacity.