Tata Consultancy Services Ltd. has raised $1 billion from TPG for its AI data centre business called HyperVault, as part of its endeavour to become the world’s largest AI-led IT services company.
The TCS-TPG deal, according to the Mumbai-based company, will help drive stronger returns to shareholders, reduce capital outlay and create long-term value for the AI data centre platform.
The San Francisco-based private equity firm and India’s largest IT services firm will invest in HyperVault a total of ₹18,000 crore (about $2 billion) in a mix of equity and debt over the next few years, according to a statement on Thursday. While TCS is likely to retain a majority stake of 51% in the joint venture, TPG will invest up to ₹8,820 crore for a 27.5-49% stake.
The TCS-TPG deal to build large, gigawatt-scale AI data centres in India “will further strengthen our partnership with hyperscalers and AI companies”, TCS Chairman N. Chandrasekaran said in the statement. “With this capability, TCS is now uniquely positioned to deliver complete AI solutions for its customers and partners.”
On Thursday, TCS shares fell 0.05% to ₹3145.75 apiece on the BSE even as the benchmark Sensex ended the day 0.52% higher at 85,632.68 points.