Tata Consultancy Services (TCS) is preparing for one of the biggest strategic shifts in its history as it enters a multi-billion-dollar joint venture with global private-equity firm TPG. The move has put the TCS share price firmly in focus as the company moves from a low-capex model to large infrastructure investments.
TCS and TPG plan to invest around US$2 billion in equity in a new subsidiary named HyperVault AI Data Centre Ltd, where TCS will hold a 51% majority stake. Over time, the venture aims to raise another US$4.5-US$5 billion through debt. This will be the first time TCS takes external equity funding and borrows at such scale for a new line of business.
The project aims to build up to 1.2 GW of data-centre capacity over the next five to seven years. This is equal to the entire data-centre capacity currently installed across India, showing the size and ambition of the plan.
The new business will be run by an independent management team. It will offer co-location services to hyperscalers, Indian enterprises, government agencies and companies within the Tata Group. Initial revenues are expected to begin in 18-24 months as the first phases become operational.
Each 150 MW of capacity needs about US$1 billion in investment, making this a long-term and capital-intensive venture.
The announcement has drawn mixed reactions from investors. TCS has always followed a capex-light, organic growth model and has delivered industry-leading return ratios. Moving into a capex-heavy business has raised questions about whether its strong return on equity and return on invested capital may come under pressure.
On 20 November 2025, TCS share price closed at ₹3,144.80, with a slight drop of 0.09 % for the day.
The company is also undergoing internal changes as it shifts towards more AI-driven operations. Its workforce fell by nearly 6,000 employees in the last quarter as part of a broader plan to improve efficiency.
These developments have kept the TCS share price under close watch, especially after a small decline following its initial data-centre announcement.
With this move, TCS joins several large Indian groups investing heavily in data-centre infrastructure, including Reliance Industries, the Adani Group and Bharti Airtel. India’s data-centre capacity is expected to grow sharply in the coming years, potentially reaching up to 9 GW.
Read more: Gift Nifty Today: Indian Stock Market Set to Open on a Lower Note.
The joint venture with TPG marks a major shift in TCS’s long-standing business strategy. While the move places short-term pressure on investor sentiment, it positions the company to compete strongly in the fast-growing market for AI-ready data centres. The coming months will be key as investors track both project progress and the impact on the TCS share price.
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Published on: Nov 21, 2025, 9:10 AM IST
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