TCS, TPG join forces in Rs 18,000 cr AI data centre play

Economic Times
Economic Times
17h ago 3 views
Tata Consultancy Services (TCS) has partnered with TPG to create HyperVault AI Data Centre Ltd, investing Rs 18,000 crore to meet rising AI demands in India.
TCS, TPG join forces in Rs 18,000 cr AI data centre play
A What happened
Tata Consultancy Services (TCS) has formed a joint venture with private equity firm TPG, named HyperVault AI Data Centre Ltd, with an investment of Rs 18,000 crore. This initiative aims to create multiple AI and Sovereign Data Centers in India, addressing the increasing demand for AI capabilities. TCS will hold a 51% stake while TPG will have a 49% stake, investing up to Rs 8,820 crore. The venture will focus on developing infrastructure for AI and non-AI workloads, enhancing TCS's ability to deliver comprehensive AI solutions. This collaboration marks TCS's first external equity partnership with a private equity firm, aiming to position TCS as a leader in AI-led technology services.

Key insights

  • 1

    Significant Investment

    TCS and TPG are investing Rs 18,000 crore in AI infrastructure.

  • 2

    Joint Venture Focus

    HyperVault will develop AI and Sovereign Data Centers.

  • 3

    Market Growth

    India's data center capacity is expected to exceed 10GW by 2030.

Takeaways

The partnership between TCS and TPG represents a strategic move to enhance AI infrastructure in India, positioning TCS as a key player in the growing AI market.

Topics

AI & ML Economy