Tata Consultancy Services (TCS) is in talks to sign up hyperscalers, including Amazon Web Services (AWS) and artificial intelligence firm OpenAI, as anchor customers for its first data centre coming up in Navi Mumbai, Moneycontrol reported citing people familiar with the matter.
The facility is being developed in joint venture with global private equity firm TPG and is expected to be the first project to get operational on the HyperVault platform. The data centre, planned with a capacity of around 120 megawatts, is targeted to go live in about 18 months.
Discussions with potential clients are at an early stage and no binding agreements have been signed yet, sources said, adding the focus is on hyperscalers and AI-led firms looking for large-scale, high-density computing infrastructure in India, as per a Moneycontrol report.
For TCS, HyperVault is the first attempt to build a standalone AI data centre business instead of merely consuming cloud capacity on behalf of clients. TPG is investing up to $1 billion for a minority stake while TCS retains majority control. Both firms have committed up to ₹18,000 crore through a mix of equity and debt. The platform is expected to serve hyperscalers, AI enterprises, government clients and group companies, with ambitions extending beyond a single facility in Navi Mumbai.
The timing helps. India’s data centre market is only starting to steepen its growth curve. Installed capacity is estimated at roughly 1.5 gigawatts and projected to top 10 GW by 2030, helped by cloud adoption, data localisation and AI workloads. That’s pulled in close to $94 billion in investments since 2019, prompting technology firms and infrastructure investors to tie up land and power early.
Why data centre investments matter now
India is positioning itself as a potential hub for global AI infrastructure just as policy risk surfaces in the US over the electricity footprint of AI-heavy compute.
Senior US policymakers have signalled discomfort with domestic power subsidising overseas AI demand, a tension reinforced by Navarro’s comments questioning why AI data centres serving users in India and China should run on American electricity.
With US energy politics turning sharper, India offers cheaper power, improving land availability and localisation norms that encourage domestic hosting. For hyperscalers and AI firms, that combination makes the TCS-TPG bet less speculative and more strategic.
Beyond the TCS–TPG venture, India’s data-centre buildout is tilting decisively towards gigawatt-scale AI facilities backed by long-term renewable power and coastal locations. For instance, AdaniConneX’s partnership with Google plans a $15-billion AI campus in Visakhapatnam, targeting gigawatt-scale capacity with TPUs and GPUs for model training.
Meanwhile, Meta and Sify are building a ₹15,266-crore (500 MW) AI facility in Paradesipalem, also near Vizag, positioned for generative AI and AR/VR workloads—effectively turning Andhra Pradesh into a serious hyperscaler cluster almost overnight.
Reliance Industries is also pursuing an even larger 1-GW site in Jamnagar, expandable to 3 GW, under a partnership with NVIDIA for large language models. The project leans on the conglomerate’s renewables footprint, and if built to scale, would materially expand India’s AI compute capacity.
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