TCS raises $1B from TPG for its AI data centre
TCS' AI data centre is aimed at Hyperscalers and enterprises who can deliver their AI services across the globe.
Tata Consultancy Services (TCS), India’s leading technology services exporter has raised $1 billion from global private equity company TPG for its AI data centre business, HyperVault.
TCS’ HyperVault will be funded through a mix of equity from TCS and TPG, and debt. According to a statement, both partners combined will commit to invest up to Rs 18,000 crore over the next few years. Out of the total commitment of up to Rs 18,000 crore, TPG will invest up to Rs 8,820 crore.
TCS’ HyperVault is planned to be an AI-ready infrastructure targeted at hyperscalers and enterprises. It will offer purpose-built, liquid-cooled data centres with high rack densities, energy efficiency and network connectivity across all key cloud regions.
TCS Chairman N Chandrasekaran said, “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.”
TCS will work closely with hyperscalers and AI companies to design, deploy, and optimise AI infrastructure to enable the delivery of AI services. TCS plans to create AI-ready data centres with capacity in excess of a GW over the next few years.
Jim Coulter, Executive Chairman of TPG and a Managing Partner of TPG Rise Climate, said, “Data centres 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.”
According to TCS, with AI demand surging, 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.
India currently has a data centre capacity of about 1.5 GW, which is expected to exceed 10GW by 2030. According to industry estimates, India’s data centre market has attracted nearly $94 billion in investments since 2019.
Edited by Jyoti Narayan