India’s TCS gets TPG to fund half of $2B AI data center project

Tata Consultancy Services (TCS) has partnered with private equity firm TPG to secure $1 billion funding for the first half of a $2 billion multi-year project called “HyperVault,” aimed at building a network of gigawatt-scale, liquid-cooled, high-density AI data centers across India. This initiative addresses the country’s significant gap between its large data generation—nearly 20% of global data—and its limited data center capacity, which currently accounts for only about 3% of the global total. The new data centers will support advanced AI workloads and are designed to meet the growing demand for AI compute power amid rapid adoption of AI technologies in India. However, the project faces challenges related to resource constraints, including water scarcity, power supply, and land availability, especially in urban hubs like Mumbai, Bengaluru, and Chennai where data center concentration is high. Liquid cooling, while necessary for managing the heat from power-intensive AI GPUs, raises concerns about water usage, with estimates suggesting a