(Reuters) -India’s Tata Consultancy Services is set to form a multi-billion dollar joint venture with private equity firm TPG to create AI and sovereign data centres, local newspaper Economic Times reported on Thursday.
TCS and TPG together plan to invest around $2 billion of equity in the JV called HyperVault AI Data Centre, ET reported, citing people aware of the matter. The remaining $4.5-$5 billion will be raised through debt over time, they added.
TCS will be the majority partner with a 51% stake, the report said, citing officials of the company who spoke on the condition of anonymity.
The companies did not immediately respond to Reuters’ requests for comment.
The recent boom in AI, which requires vast amounts of computing data, has fuelled a corporate rush to pour money into the technology globally and has led to an unprecedented growth in data centers across the world.
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia Cheema)
