Tata and TPG work together on massive data-center development across India

Tata and TPG’s giant data-center step could shift India’s tech market and quicken broad growth.

Tata's AI data center company, HyperVault, will benefit from a combined investment of Rs 18,000 crore ($2 billion) from Tata and TPG.

The chairman of TCS, Chandrasekaran, stated he is happy to have TPG join them in their efforts to develop massive GW-scale AI data centers in India in order to meet the rapidly expanding demand for AI. It will enhance their partnership with AI companies and hyperscalers. Also, TCS is in a unique position to provide full AI solutions for its partners and customers due to this capability.

HyperVault, which aims to build 1 GW of liquid-cooled data center capacity throughout India, was revealed during TCS' Q2 2025 results last month. No information has been released about any upcoming developments. TCS' HyperVault will be financed by a combination of loan and equity from TPG and TCS. TPG is expected to contribute up to Rs 8,820 crore ($990 million) of the overall commitment, with an overall shareholding of between 27.5 and 49 percent in HyperVault.

TPG Rise Climate and its Global South Initiative, a private equity strategy announced in partnership with Altérra, the UAE's $30 billion climate investment institution, are helping TPG's investment in HyperVault. Also, TPG is working together through its Asia Real Estate division.

One of the biggest tech firms in the world is TSC, a division of the Tata Group conglomerate. In 2017, Tata sold the majority of its data centers in Singapore and India to STT Telemedia's STT GDC. Previously, Tata maintained many data centers in both countries through Tata Communications. According to Data Center Map, Tata Communications continues to run about 22 data centers in 16 markets spread across five countries: the US, India, the UK, Singapore, and Portugal. Vayu cloud service provided by Tata Communications. In 2019, the company claimed to have 1 million square feet of colocation space spread across 44 locations worldwide.