This facility is being developed in partnership with global private equity firm TPG and is expected to be the first project operational on the HyperVault platform. The data centre, designed with a capacity of around 120 megawatts, aims to go live in approximately 18 months.
Conversations with potential clients are still in the early stages and no binding agreements have been finalized yet, sources noted, emphasizing that the focus remains on hyperscalers and AI-driven firms seeking extensive, high-density computing infrastructure in India, as per the report from Moneycontrol.
For TCS, HyperVault represents the inaugural effort to create a standalone AI data centre business rather than simply utilizing cloud capacity for clients. TPG is investing up to $1 billion for a minority stake, while TCS maintains majority ownership. Both companies have committed as much as ₹18,000 crore through a combination of equity and debt. The platform is anticipated to cater to hyperscalers, AI companies, government clients, and group firms, with aspirations extending beyond just one facility in Navi Mumbai.
The timing is advantageous. India’s data centre market is just beginning to accelerate in growth. The installed capacity is estimated at around 1.5 gigawatts and is projected to exceed 10 GW by 2030, fueled by cloud adoption, data localization, and AI workloads. This has attracted nearly $94 billion in investments since 2019, prompting tech firms and infrastructure investors to secure land and power proactively.
Why data centre investments matter now
India is positioning itself as a potential hub for global AI infrastructure as policy uncertainties arise in the US regarding the electricity demands of AI-focused computing.
Senior US policymakers have expressed concerns about domestic energy supporting AI demand abroad, a tension highlighted by Navarro’s remarks questioning why AI data centres serving users in India and China should utilize American electricity.
As US energy politics become more contentious, India presents cheaper energy, better land availability, and localization norms that promote domestic hosting. This combination renders the TCS-TPG partnership not just speculative but strategically advantageous for hyperscalers and AI companies.
Beyond the TCS–TPG collaboration, India’s data centre development is increasingly leaning towards gigawatt-scale AI facilities supported by long-term renewable energy sources and coastal sites. For example, AdaniConneX’s partnership with Google aims to create a $15-billion AI campus in Visakhapatnam, targeting gigawatt-scale capacity utilizing TPUs and GPUs for model training.
In addition, Meta and Sify are constructing a ₹15,266-crore (500 MW) AI facility in Paradesipalem, located near Vizag, tailored for generative AI and AR/VR tasks—significantly establishing Andhra Pradesh as a notable hyperscaler hub almost instantly.
Reliance Industries is actively pursuing an even larger 1-GW site in Jamnagar, expandable to 3 GW, in collaboration with NVIDIA for large language models. The initiative leverages the conglomerate’s renewable energy capabilities, and if fully developed, would significantly boost India’s AI computing capacity.
