TPG to pump $1 bn into TCS data centre biz HyperVault

India's largest informa- tion technology services firm, Tata Consultancy Services (TCS), on Thurs- day said it has secured $1 billion from global alter- native asset manager TPG to accelerate its data centre business, Hyper- Vault.

- SHIVANI SHINDE

With this, the company has finally taken a bold bet on the data centre space, sharpening its ambition to become the largest artificial intelligence (AI)-ready technology services player.

Together, TCS and TPG will commit up to ₹18,000 crore over the next few years. Of this, TPG will invest up to ₹8,820 crore (around $1 billion) and is expected to hold between 27.5 per cent and 49 per cent in HyperVault.

HyperVault will be funded through a mix of equity from TCS and TPG, along with debt.

TCS said in a statement that bringing in TPG as a strategic partner will help drive stronger shareholder returns, reduce capital outlay, and create long-term value for the data centre platform. TCS’ cash reserves as of September 30 stood at %1.06 trillion (around$u2 billion). The firm’s total debt is t10,932 crore.