Indian IT company Tata Consultancy Services ( TCS ) has secured a US$1 billion investment from US private equity firm TPG, as part of a partnership aimed at supporting the growth of TCS’ artificial intelligence ( AI ) data centre business HyperVault in India.

This investment will back HyperVault’s gigawatt ( GW )-scale AI-ready infrastructure build and aligns with TCS’ plan to create AI-ready data centres with capacity in excess of a GW over the next few years.

This investment and partnership marks a significant milestone in its ambition to become the largest AI-led technology services company.

TCS’ HyperVault will be funded through a mix of equity from TCS and TPG and debt. Both partners combined, will commit to invest up to 18,000 crore Indian rupees ( US$2.03 billion ) over the next few years. Out of the total commitment of up to 18,000 crore rupees, TPG will invest up to 8,820 crore rupees and is envisaged to have final shareholding between 27.5% and 49% in HyperVault.

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

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. TPG is also partnering through its Asia real estate business, the company notes, marking an important milestone for the platform in India.

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 computing hardware, high-speed storage and low-latency networks needed to run real-time, large-scale AI models and applications across industries.

India currently has about 1.5GW of data centre capacity, which is expected to exceed 10GW by 2030. India’s data centre market, according to industry estimates, has attracted nearly US$94 billion in investments since 2019.

HyperVault, TCS shares, will deliver secure, reliable, large-scale AI-ready infrastructure for hyperscalers and AI-driven organizations and offer purpose-built, liquid-cooled data centres with high rack densities, energy efficiency and network connectivity across all key cloud regions.

TCS will work closely with hyperscalers and AI companies to design, deploy and optimize AI infrastructure and enable world-class service delivery of AI services.

“With this capability, TCS is uniquely positioned,” says N. Chandrasekaran, its chairman, “to deliver complete AI solutions for its customers and partners.”

Jim Coulter, TPG’s executive chairman and a TPG Rise Climate managing partner, adds: “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.”