Investment firm TPG is investing in Tata Consultancy Services’ (TCS) new data center venture.

Both Tata and TPG announced that they would invest a combined Rs 18,000 crore ($2 billion) to support the growth of Tata's AI data center business, HyperVault.

“I am delighted to have TPG join us in our journey to build large GW-scale AI data centers in India, tapping the rapidly growing AI demand. It will further strengthen our partnership with hyperscalers and AI companies,” said N. Chandrasekaran, TCS chairman. “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 was announced during TCS’ Q2 2025 results last month, with plans to develop 1GW of liquid-cooled data center capacity across India.

Details on any planned developments haven’t been shared.

Jim Coulter, executive chairman of TPG and a managing partner of TPG Rise Climate, added: “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. Data centers 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.”

TCS’ HyperVault will be funded through a mix of equity from TCS and TPG, and debt.

Out of the total commitment, TPG will invest up to Rs 8,820 crore ($990 million) and is envisaged to have a final shareholding between 27.5 percent and 49 percent in HyperVault.

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 Altérra, the UAE’s $30 billion climate investment vehicle. Additionally, TPG is also partnering through its Asia Real Estate business.

TSC, part of the Tata Group conglomerate, is one of the largest technology companies in the world.

Tata previously operated several data centers across India and Singapore via Tata Communications, but sold a majority stake in both countries to STT Telemedia’s STT GDC around 2017. Data Center Map reports Tata Communications still operates around 22 data centers in 16 markets across five countries: India, the UK, Singapore, Portugal, and the US. Tata Communications operates a cloud offering called Vayu Cloud. Around 2019, the company previously said it had 1 million square feet of colocation space in 44 locations worldwide.

Founded in 1992, TPG is a private equity firm with some $286 billion in assets under management. The firm has invested in a number of telecoms and fiber firms, and is behind the large Quantum Frederick data center park in Maryland.

TCS was advised by AZB & Partners as legal counsel, and Deloitte Touche Tohmatsu India LLP as tax advisors. TPG was advised by Cyril Amarchand Mangaldas and Latham & Watkins LLP as legal counsel, and Price Waterhouse & Co. LLP as tax advisors.

Tillman and Reliance plan Andhra Pradesh data centers

In other recent news from India, several large-scale developments are planned in the state of Andhra Pradesh.

The Government of Andhra Pradesh has signed a Memorandum of Understanding (MoU) with Tillman Global Holdings to develop a 300MW hyperscale data center campus in Visakhapatnam (aka Vizag) with a proposed investment of Rs 15,000 crore.

The TDGAP1 campus will span around 40 acres and could go live in 2028.

“Andhra Pradesh offers a compelling combination of coastal connectivity, progressive governance, and a rapidly expanding digital economy,” said Sachit Ahuja, co-president, Tillman Global Holdings. “With TDGAP1, we aim to build a world-class 300 MW campus in Visakhapatnam that anchors long-term digital infrastructure, creates high-quality jobs, and catalyzes a broader ecosystem of services and innovation. We value the State’s facilitation through APEDB and look forward to executing this project in a time-bound manner.”

Launched in 2016, Tillman invests in energy and digital infrastructure globally. Its investments span a number of fiber and tower assets.

This month also saw Andhra Pradesh chief minister, Chandrababu Naidu, announce that Reliance Industries plans to set up a 1GW AI data center campus in the state.

Few further details were available on the planned development.

Reliance, which owns telecoms firm Jio, is also planning a gigawatt-scale data center development in Jamnagar city in Gujarat.

"Together forming one of Asia's strongest ⁠AI infrastructure networks," Naidu ​said.

The likes of Google, Anant Raj, Sify, Adani, and Pi Datacenters have or are planning to develop data centers in Andhra Pradesh, mostly around Vizag.