TCS’s mega AI plan worth ₹57,600 crore! TPG to invest ₹8,820 crore to build India’s largest Hypervolt data center hub
The era of AI data centers in India is about to gain new momentum. TCS, the country’s largest IT company, has taken a major step towards realizing its hyper-scale AI data center project, Hypervolt. The company has partnered with global private equity giant TPG, with both partners investing approximately ₹18,000 crore in equity. TPG alone will invest ₹1 billion, or approximately ₹8,820 crore, and will hold a 27.5% to 49% stake in this mega project. This partnership is poised to take AI infrastructure in India to the next level.
A high-tech data hub with a 1 GW capacity will be built in India.
This deal comes just 40 days after TCS announced its entry into the data center business. The company plans to build ultra-modern AI data centers with a capacity of 1 gigawatt (GW), with a total investment of $6.5 billion (₹57,600 crore). Hypervolt’s data centers will be developed in Navi Mumbai, Hyderabad, and Chennai and are planned to be completed over the next five years. Land can be acquired from any source, including TCS, the Tata Group, or newly acquired properties.
Complete Funding Structure and TCS’s Game Plan
TCS CEO and MD Krishnavasan stated that both partners will invest approximately $2 billion in core equity, while the remaining funding will be raised in the form of debt. He clarified that no other equity partner is needed besides TPG. This project will reduce TCS’s capex and generate strong returns for shareholders.
Tata Group’s Super Ecosystem Will Strengthen
Tata Sons Chairman N. Chandrasekaran said that this partnership will play a major role in meeting the growing demand for AI and enable TCS to deliver end-to-end AI solutions. Tata Group’s cable network, renewable energy, real estate, and construction ecosystems will also strengthen Hypervolt.
Why is this project a game-changer for India?
India’s total data center capacity currently stands at 1.5 GW, which is projected to reach 10 GW by 2030.
The country has attracted over ₹7.8 lakh crore ($94 billion) in investment in this sector so far.
Due to data localization and the AI boom, Hypervolt could become India’s largest AI data hub in the future.
