TCS And TPG To Invest Rs 18,000 Crore In AI Data Centers

Tata Consultancy Services (TCS), the largest Indian IT services company, and private equity firm TPG will invest a total of Rs 18,000 crore in data centres. TPG will invest $1 billion or around Rs 8,870 crore, for a 27.5% to 49% stake in the new AI-focused data centre business that will be christened HyperVault.

TCS said the addition of TPG as a strategic investor will alleviate its capital burden, result in better returns to shareholders, and also create long-term value for the data centre platform. Last month, TCS announced its plans to build 1 GW of data centers at an aggregate investment of $6.5 billion, or around Rs 57,000 crore.

Tata Sons Chairman N. Chandrasekaran said, "TPG's investment in AI data centers will strengthen TCS' relationship with AI companies by providing TCS with comprehensive AI solutions for its clients."

TPG Executive Chairman Jim Colter explained that the data centers will be established by sharing green energy, infrastructure, technology and real estate.

The new AI data centers will support hyperscalers, AI companies, and government and private organizations by efficiently managing computing hardware, high-speed storage, and low-latency networks.