TCS, TPG Invest ₹18,000 Cr in Data Centre Biz

Mumbai, Nov 20 (PTI) The country's largest IT services company TCS on Thursday announced a tie-up with private equity major TPG for its upcoming data centre business, in which both the partners aim to invest Rs 18,000 crore.

TPG will invest USD 1 billion or around Rs 8,870 crore in the AI data centre business christened as 'Hypervault', and hold a stake between 27.5-49 per cent in the venture.

"Bringing in TPG as a strategic investment partner will help TCS drive stronger returns to its shareholders, reduce its capital outlay, and create long-term value for the data centre platform," a statement said.

TCS had last month announced its entry into the data centre play, and plans to invest up to USD 6.5 billion to create over 1GW of capacity.

"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," Tata Sons Chairman N Chandrasekaran said.

He added that with this capability, TCS is uniquely positioned to deliver complete AI solutions for its customers and partners.

"Data centres are a multifaceted asset class and sit at the intersection of green energy infrastructure, technology and real estate," Jim Coulter, executive Chairman of TPG and a managing partner of TPG Rise Climate, said.

TPG's investment in HyperVault is being facilitated through TPG Rise Climate and its Global South Initiative, a private equity strategy launched in partnership with ALTERRA, the statement said.

The firm is also partnering through its Asia Real Estate business, marking an important milestone for the platform in India, it added.

AI-data centres play a crucial role by providing the necessary infrastructure to hyperscalers, AI companies, private enterprises and the public sector, for hosting their compute hardware, high-speed storage, and low-latency networks needed to run real-time, large-scale AI models and applications across industries, the statement explained.

At present, the overall capacity in India stands at 1.5 GW which is expected to surge to 10 GW by 2030, and the datacenters market has attracted investments of over USD 94 billion till now, it said.