TCS Launches New Company, Secures $1 Billion Investment — Ready to Disrupt the AI Infrastructure Sector

India’s largest IT company, Tata Consultancy Services (TCS), has set an ambitious target to become the country’s biggest AI-driven technology services provider. In a major strategic move, the company has created a new entity and secured $1 billion (₹8,820 crore) funding from global private equity firm TPG to build large-scale AI data centres across India.

TCS Forms ‘HyperVault’ to Build India’s Largest AI Data Centres

TCS has announced the formation of a new company named HyperVault, which will focus exclusively on designing and building advanced AI-ready data centre infrastructure.

Under this joint venture, TCS and TPG will collectively invest up to ₹18,000 crore over the next few years. Additional capital will be raised through debt to accelerate infrastructure development.

HyperVault will work closely with hyperscalers and global AI companies to design, deploy and optimize AI infrastructure that supports next-generation enterprise solutions. The initiative aims to provide faster, scalable and high-performance AI services for businesses across sectors.

How Big Is the New Venture?

This investment will enable TCS to develop more than 1 gigawatt (GW) of AI-ready data centre capacity — a transformative step for India’s AI ecosystem.

TCS CEO K. Krithivasan, in an exclusive conversation with The Times of India, said:
“Entering the data centre business was essential to strengthen our partnerships and expand the entire scope of our services.”

Equity Structure: Who Owns How Much?

HyperVault’s ownership will be divided as follows:

• TCS: 51%
• TPG: Between 27.5% and 49% (depending on final terms)

This structure allows TCS to minimize financial burden while ensuring long-term, high-value returns from India’s booming AI infrastructure market.

India’s Data Centre Market Set for Explosive Growth

India currently has around 1.5 GW of installed data centre capacity.
By 2030, this is expected to soar to over 10 GW, driven by AI adoption, cloud expansion, and the growing need for secure digital infrastructure.

With HyperVault, TCS positions itself at the heart of this massive growth opportunity.