Shares of Tata Consultancy Services Ltd (TCS) are trading flat after touching a day’s high of Rs 3,170 on 21st November. This occurs even as the firm said yesterday (20th November) that it has signed agreements with TPG Terabyte Bidco for an investment. The investment is up to Rs 18,000 crore in its AI-focused data centre subsidiary HyperVault. India races to build large-scale infrastructure to meet accelerating demand for artificial intelligence.

TCS said the investment will be made over the next few years through equity and compulsorily convertible preference shares. TCS and TPG will contribute in a 51:49 ratio. TPG will invest up to Rs 8,820 crore and is expected to hold between 27.5% and 49% of HyperVault eventually. The deal was cleared by TCS’s investment committee on Thursday.

HyperVault will be the exclusive unit for all of TCS’s AI and non-AI data centre operations. It plans to build more than 1 GW of AI-ready capacity. India’s data centre market is expected to grow from around 1.5 GW today to more than 10 GW by 2030, according to industry estimates.

TCS said the partnership with TPG will reduce its capital burden. It will also deepen its relationships with hyperscalers and AI firms, and speed up its push to become a leading AI-driven services provider. The deal is still subject to customary conditions and approvals.

At 1:24 PM, shares of TCS were trading 0.25% higher at Rs 3,152.60 on NSE.

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