Tata Consultancy Services (TCS) on November 20 announced that it has secured $1 billion (~ Rs 8,820 crores) from global alternate asset management firm TPG to fund its AI data center business, HyperVault. The investment will happen in tranches over the next few years.

HyperVault will be funded through a mix of equity from TCS, TPG and debt. As per the agreement, out of the total commitment of up to Rs 18,000 crore, TPG will invest up to Rs 8,820 crore and will eventually have a final shareholding of between 27.5 per cent and 49 per cent in HyperVault. The remaining will be invested by TCS.

TCS believes bringing TPG as a strategic investment partner will help drive stronger returns to its shareholders, reduce its capital outlay, and create long-term value for the data center platform.

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