Tata Consultancy Services: Tata Group company Tata Consultancy Services said on Thursday that the company has partnered with global alternative asset manager TPG to build its newly built AI data center. Both the companies will together invest up to Rs 18,000 crore over a few years to advance the AI data center unit Hypervault, making it one of the largest capital commitments in the country’s data infrastructure space.
What will be TPG’s stake?
TCS has said on this, investment will be made in HyperVault through a mix of equity, compulsory convertible preference shares and additional debt. Out of the total commitment, TPG will invest up to Rs 8,820 crore and the remaining part will be given by TCS so that the 51:49 capital participation structure remains. The investment will be made in installments and will be subject to pre-existing conditions and legal approvals. Depending on the final investment sequence, TPG is expected to own 27.5 to 49 percent of HyperVault.
What is the plan of TCS?
TCS’s focus on AI data center is continuously increasing. The company plans to build such a data center in the country, whose capacity will be 1 gigawatt. In the coming time, companies making AI will need such data centers, which are fast as well as consume less electricity. TCS is preparing itself to meet this need of the changing times.
In this sequence, TCS’s HyperVault will serve as an exclusive vehicle for AI and non-AI data center operations. According to industry estimates, India’s data center market is expected to exceed 10 GW by 2030, from around 1.5 GW currently.
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