TCS and TPG Bet Big on AI Data Centers

AI may not officially run the world yet, but at the rate companies are pouring money into data centers, it’s clearly headed in that direction. Tata Consultancy Services (TCS) has decided to get ahead of that curve, not just by building AI solutions, but by creating the infrastructure that enables AI. 

And it’s not doing it alone. The company has teamed up with global investment firm TPG to launch a network of AI-focused data centers across India. The joint venture, called HyperVault AI Data Centre, is backed by roughly $2 billion in combined investment over the next few years, funded through a mix of equity and debt.

Why the TCS and TPG partnership matters

It’s not a huge secret that artificial intelligence has kicked off a global buildout of data centers capable of handling enormous compute demands. India is becoming a massive target for that growth, with data center capacity expected to more than triple by 2030. TCS wants to be at the center of that momentum rather than just supplying services around it.

TPG is investing about $1 billion into HyperVault, while TCS will hold a 51% majority stake. This will give TCS both capital and support from a firm that has a ton of experience investing in infrastructure, technology, and climate-focused assets.

TCS Chairman N. Chandrasekaran summed up the company’s ambitions:

“[The investment] will further strengthen our partnership with hyperscalers and AI companies,” said Chandrasekaran. “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.”

HyperVault’s role in TCS’ strategy

HyperVault will focus on building large-scale, liquid-cooled data centers across India, explicitly designed for AI workloads. The goal is to offer secure, reliable, high-density compute capacity for hyperscalers, cloud providers, and AI-driven organizations. TCS previously announced plans to invest up to $7 billion in a 1-GW data center unit, and HyperVault is the centerpiece of that plan.

From TPG’s perspective, the investment aligns with its strategy to back climate-positive digital infrastructure and the continued rise of enterprise AI adoption. Jim Coulter, executive chairman of TPG, emphasized the alignment between both companies.

“We are excited to partner with TCS and are grateful for our long-standing partnership with the Tata Group, both who share our vision and commitment to innovation and sustainability,” he said.

India’s growing AI infrastructure landscape

This deal is happening in tandem (or perhaps because of) a broader wave of investment in India’s data center market. 

According to Bloomberg, Google has announced plans to spend roughly $15 billion on an AI hub in southern India; Amazon has said it’ll invest $12.7 billion in cloud infrastructure through 2030; and OpenAI is exploring a 1-GW data center in the region. 

That’s a lot of global players moving in, and TCS seems to be planning to compete not only as a services provider but also as a builder and operator of AI infrastructure.

HyperVault now gives the company a strategic path to do that, with the balance sheet support to match the scale of the opportunity.

While TCS and TPG are pouring $2B into HyperVault to build out AI data center capacity, OptiCool’s channel push shows the flip side of the same wave. One is building massive compute power, the other is helping partners support the high-density cooling it depends on.