MUMBAI – Tata Consultancy Services (TCS), India’s leading IT services company, is set to form a multi-billion dollar joint venture with private equity firm TPG to develop AI and sovereign data centres, according to a report by the Economic Times. The venture, tentatively named HyperVault AI Data Centre, will focus on large-scale data processing and storage infrastructure to support the rapidly growing demand for artificial intelligence applications.

Investment Structure and Ownership

TCS and TPG plan to invest approximately $2 billion in equity into the joint venture. Additional funding of $4.5 to $5 billion will be raised through debt over time, the report said, citing anonymous company officials. TCS will hold a majority stake of 51% in the joint venture, positioning the company as the lead partner in strategic decision-making and operational management.

The companies have not yet publicly commented on the proposed joint venture.

AI Boom Driving Data Centre Expansion

The partnership reflects the global surge in demand for AI computing resources, which require massive, high-performance data centres. Enterprises worldwide are investing heavily in AI infrastructure, fueling unprecedented growth in data centre construction and expansion. HyperVault AI Data Centre is expected to play a critical role in providing scalable, secure, and sovereign data storage solutions to support AI development across industries.

This move positions TCS to expand its footprint in next-generation technology services while leveraging TPG’s financial expertise to fund large-scale infrastructure projects. Analysts suggest that the JV could become one of the largest AI-focused data centre platforms in India and potentially across Asia, catering to both public and private sector clients.

Strategic Implications

As AI adoption accelerates globally, the demand for robust and secure data infrastructure is growing rapidly. By combining TCS’s technology expertise with TPG’s investment capabilities, the joint venture aims to create a sustainable, large-scale AI ecosystem capable of handling advanced computing workloads, while also addressing data sovereignty requirements for enterprise and government clients.

Conclusion

The formation of the HyperVault AI Data Centre joint venture marks a significant step in India’s technology infrastructure landscape. With a combined investment of $6.5-$7 billion, TCS and TPG are poised to shape the future of AI-ready data centres, supporting the digital transformation ambitions of businesses and governments alike.