TCS secures TPG investment for AI data center business

Tata Consultancy Services (TCS) has entered into a Securities Subscription Agreement and Shareholders' Agreement with TPG Terabyte Bidco Pte. Ltd. and HyperVault AI Data Center Limited, a wholly owned subsidiary of TCS. This agreement involves an investment in HyperVault to establish AI data centers with over 1 GW capacity.

Under the agreement, TCS and TPG Terabyte will collectively invest an aggregate amount of up to INR 18,000 crore into HyperVault over the next few years. TPG Terabyte's investment is projected to be up to INR 8,820 crore, leading to a final shareholding between 27.5% and 49% in HyperVault. The funding will be infused through equity share capital and multiple tranches of compulsorily convertible preference shares.

HyperVault will be the exclusive vehicle for TCS' AI data center business, focusing on the development, ownership, operation, and management of data centers for both AI and non-AI workloads in India. The transaction is subject to fulfillment of conditions precedent and statutory approvals.