Chinese tech giant Huawei said on Monday it had developed a new way of making semiconductors that could get around its U.S.-enforced lack of access to the most advanced chipmaking equipment. Huawei has in recent years been at the centre of a geopolitical standoff after Washington warned its
World Tarot Day 2026: The most misunderstood tarot cards and what they actually meanPeople tarot as entertainment or fear it because of the dramatic social media readings. But tarot was never meant to work through fear; it is a symbolic tool. Updated on: May 25
From mirrors to mood lighting, these 5 budget-friendly decor tricks can make small homes look surprisingly luxuriousWant to upgrade your home into a luxurious space? Here are some budget-friendly decor ideas you can consider for a beautiful home. Published on: May 25
A Bahraini court sentenced nine defendants to life in prison and two others to three years in jail for collaborating with Iran’s Revolutionary Guard Corps (IRGC) to carry out what it described as “hostile and terrorist acts” against Bahrain
Tarot vs Astrology: Which one can predict your future better? An expert breaks it downAstrology explains cosmic timing and patterns. Tarot explains your emotional experience of those patterns. One gives you the map, the other acts like a mirror. Updated on: May 25
ET Exclusive: TCS looks to rope in TPG for $2 billion AI data centre JV
Tata Consultancy Services is forming a multi-billion dollar joint venture with TPG to build AI and Sovereign Data Centers, marking a strategic shift towards a capex-heavy model. This ambitious project aims to establish TCS as a major player in the data center space, investing significantly to meet growing demand.
India's largest software exporter Tata Consultancy Services (TCS) is set to form a multi-billion dollar joint venture with private equity group TPG to create multiple AI and Sovereign Data Centers as the Tata Group flagship looks to accelerate its efforts towards becoming “the world's largest AI-led technology services firm,” said people in the know.
This would be a strategic pivot for the IT firm that has historically pursued a capex-light, organic growth business model.
Together TCS and TPG are planning to invest around $2 billion of equity as alliance partners in HyperVault AI Data Centre Ltd – incorporated as a wholly owned subsidiary of the technology company in late October. TCS will be the majority partner in the JV with 51% stake, according to officials of the company in condition of anonymity, as the talks are still in private domain. The residual $4.5-$5 billion will be raised through debt over time, they added.
Both sides are expected to sign a formal agreement by this weekend, possibly as early as Thursday. This will be the third time that the US buyout group will be partnering with India's largest conglomerate after Tata Motors EV arm and Tata Technologies. This will also be the first time cash rich TCS, will be taking external equity from a PE firm as well as external debt.
Last month, TCS announced its plan to make a foray into the data centre space with an aim to build up to 1.2 GW of capacity, which will entail $6.5-$7 billion in investments. The company had said this will be made possible through partial equity investments from financial investors and funding through debt, according to the company's management.
You Might Also Like: India's data centre capacity to double by 2027, may rise 5x by 2030: Macquarie Equity Research
It has so far not disclosed the identity of its financial partners. The new business unit led by a separate management will operate as a co-location data centre provider offering services to hyperscalers, Indian enterprises and government entities along with Tata group companies, said the company's management. The project will require five-seven years for complete build out and revenue could start kicking in over the next 18-24 months.
To put the scale of TCS' project in context, 1.2 Gigawatt is the entire combined capacity of India's existing data centres. However, this is expected to grow multifold reaching 9 Gigawatt in the next 5-7 years attracting capex investments of $50-$95 billion as competition heats up in the space, market forecasts suggest.
The announcement however triggered polarising views from investors and analysts, some of whom expressed apprehensions over the diversification which they saw as having limited overlaps with its core IT services and potential pressure on returns. TCS's return on equity (ROE) stood at 51% and return on invested capital (ROIC) at over 80% in FY25, but the shift to a capex-heavy model may weigh on these metrics. The TCS stock had also reacted negatively, dropping 1.5% following the public announcement.
"We have set a target of 1 GW. We will be doing it in phases. We expect to do 1 GW in 5-7 years," TCS' chief executive K Krithivasan said at an investor call after the company announced its September quarter earnings. As per the company's calculations, every 150 MW will entail an investment of $1 billion, which translates into over $6.5 billion for the overall capacity building. Samir Sekhsaria, TCS' chief financial officer said revenues from the data centre business will start accruing in 18-24 months' time.
You Might Also Like: Adani Enterprises partners with Google for India's largest data centre campus in Visakhapatnam
India's largest software services firm is confronting one of its most significant transitions yet, as it seeks to pivot its traditional, human-led services model to stay relevant amid AI disruption. For the first time, TCS laid off 1%, or 6,000, of its around 600,000-strong workforce during the last quarter as part of its larger plans to reduce its headcount by 2% in this financial year. This, combined with voluntary and involuntary attrition, TCS' workforce declined by 19,755 on a net basis in July-September, its largest quarterly decline ever.
TPG was unavailable for comment. Mails sent to TCS spokesperson also did not generate an immediate response.
Data Centre Gold Rush
The Tata Group would be the latest among deep pocketed Indian business groups to make a big entry and would pit them directly against leading co-location providers such as Reliance Industries, AdaniConnex, Bharti Airtel's Nxtra Data, NTT Global, Sify Technologies and CtrlS Datacenters.
You Might Also Like: Reliance to set up 1 gigawatt AI data centre in Andhra Pradesh
Last month, Adani Enterprises and Alphabet's Google said they will invest $15 billion over the next five years to develop a gigawatt-scale data center hub in Andhra Pradesh. AdaniConneX, a joint venture between the Adani Group and data center operator EdgeConneX, will undertake the project, which will be supported by a subsea cable network and renewable energy facilities.
In August, Reliance Industries signed deals with Meta and Google to develop AI platforms and announced plans for a gigawatt-scale data center in the western state of Gujarat. ET on November 14 reported Reliance is also planning to set up a 1 GW data centre in Andhra Pradesh, a twin of its facility that is coming up in Jamnagar.
Even then these multi-billion dollar initiatives are a fraction of what the big tech titans — Meta, Microsoft, Amazon and Google — are spending globally, with their combined annual capex projected to exceed $400 billion in 2026 alone.
Add as a Reliable and Trusted News Source Add Now!
Source: EconomicTimes
Related Posts: TSMC, Sony Semiconductor Solutions to establish image sensor joint venture in Kumamoto Pune Police raid consultancy linked to NCP Opposition using Parliament to vent out frustration US To Sell Multi-Billion-Dollar F-35 Jets To Saudi Arabia – Is Israel Stunned Will Nepal's Political Turmoil Derail India's Multi-Billion Dollar Projects AMD-OpenAI multi-billion-dollar deal challenges Nvidia's dominance Thousands at risk after multi-million dollar Everest flood warning system left to rust Noel Tata, trustees block Mehli Mistry’s return at Tata Trusts Crucial Tata Trusts Meeting Set For May Before Key Tata Sons Board Meet In June 2026 Tata Punch Facelift Vs Older Tata Punch
The National Testing Agency (NTA) has postponed the Common University Entrance Test Undergraduate (CUET-UG) 2026 examinations scheduled for May 28 in both shifts following a change in the Bakrid holiday date. The agency said revised examination dates for the affected candidates will be announced
3 hours ago
President Nikos Christodoulides present, Cyprus positions itself as Europe gateway for HT Labs, other Indian AI firmsRepresenting HT Labs, the innovation and technology arm of HT Media Group, Avinash Mudaliar, Co-Founder and CEO, participated in discussions. Updated on: May 25
3 hours ago
The Delhi Gymkhana Club has moved the High Court against the Union government’s order directing it to hand over its 27.3-acre premises by June 5, Live Law reported on Monday. The matter was mentioned before Justice Avneesh Jhingan on Monday by advocate Abhishek Manu Singhvi
3 hours ago
Strains of the old "Glory, Glory" anthem echoed inside the giant stadium as Tottenham Hotspur stepped back from the precipice of the most humiliating relegation in Premier League history. Spurs players and supporters were in unison at last as they could finally look forward to next season as a
3 hours ago
Australian cricketer Megan Schutt will conclude her international career after the 2026 T20 World Cup. The seasoned bowler aims for a strong finish in her final major ICC campaign. Schutt, a veteran of many successful tournaments, wants to pass the baton to the next generation of players
3 hours ago
The Japanese fruit ‘sando’ is becoming India’s favourite summer dessert; take a look With fluffy milk bread, clouds of whipped cream, and jewel-like slices of fresh fruit tucked inside, the Japanese sando has become India’s go-to dessert Updated on: May 25
3 hours ago
Madhuri Dixit serves ‘a little bit of drama’ as she gives classic white saree a modern twist with chic jacketMadhuri Dixit proves age is just a number as she stuns in ivory saree with floral prints, layered with a sleek jacket, blending elegance with modern drama. Published on: May 25
3 hours ago
Stolen Baby: The Murder of Heidi Broussard: Where is slain mom's family now? What to know as crime drama streamsThe release of Stolen Baby: The Murder of Heidi Broussard on Netflix has brought the 2019 murder case in focus again. Know where the slain mom's family is. May 25, 2026
3 hours ago
Crude oil prices plunge after US and Iran have shared significant signals on the progress in talks to end the war, however both sides are still at loggerheads on certain issues. Global oil prices have plunged over 5.5% after US and Iran have indicated that there is significant progress in their
3 hours ago
Editorial independence is core to our work. Some links may earn us a commission, without influencing our opinions.From office work to AI tasks: The best Asus ExpertBook P3 and Snapdragon PCs to consider in 2026AI laptops are everywhere in 2026, but only a few actually improve daily work
3 hours ago
LeBron James has spent more than two decades rewriting NBA history. On Sunday, though, one of his most remarkable streaks finally came to an end. For the first time since his rookie season in 2003-04, the Los Angeles Lakers superstar was not named to an All-NBA team
3 hours ago
Priyadarshan on Paresh Rawal's exit from Hera Pheri 3: ‘Not aware’Hera Pheri 3 faces turbulence as Paresh Rawal reportedly leaves the film, returning his signing fee. May 25, 2026, 13:38:45 IST Written by Vibha Maru Share via Copy link The controversy around Hera Pheri 3 doesn’t seem to end
3 hours ago
BJD Rajya Sabha MP Debashish Samantaray has resigned from the party. He cited systematic belittlement as the reason for his departure. This follows similar exits by other Rajya Sabha MPs. Samantaray expressed gratitude to party chief Naveen Patnaik for past opportunities
3 hours ago
Prashant Kishor to finally contest an election himself? Jan Suraaj Party targets Bankipur, via an ashramKishor is bullish on Bankipur, and claimed that only the Jan Suraaj Party can defeat the BJP there. "We just need to field a strong candidate," he said. Updated on: May 25
3 hours ago
It’s been almost five months since Ranveer Singh’s exit from Don 3 sparked controversy. Now, as the dispute between Farhan Akhtar and the actor continues, the Federation of Western India Cine Employees (FWICE) has finally intervened, announcing that its decision on the matter will be revealed
3 hours ago
Even George Russell’s biggest critics would probably admit one thing right now: the Briton’s luck this season has been brutal. And standing beside his stricken Mercedes in Montreal on Sunday night, Russell looked completely drained by it all. After opening the season with victory in Shanghai
3 hours ago
Turn a classic, creamy tiramisu into a refreshing summer treat by swapping coffee for juicy mango and layering it with fresh fruit and light mascarpone cream. This mango‑infused version keeps the dessert’s rich, custard‑like texture but adds a bright
3 hours ago
As Cannes Film Festival closes, which are the acclaimed films from this year's crop that could be heading for Academy Award nominations? If you want to know which films are going to be nominated for Oscars, it's worth looking at what premiered at the Cannes Film Festival the previous May
3 hours ago
Delhi Capitals' IPL journey concluded with a sixth-place finish. Coach Hemang Badani cited inconsistent play and missed opportunities as reasons for the team's failure to reach the playoffs. Crucial losses, dropped catches, and batting collapses hampered their campaign
3 hours ago
3 elephant calves die within 17 days in Chhattisgarh’s DharamjaigarhEight elephant calves have died in Dharamjaigarh forest division over the past five months due to drowning, getting trapped in marshland, etc Published on: May 25, 2026 1:27 PM IST By Ritesh Mishra Share via Copy link Three
3 hours ago
The Canadian Grand Prix was the race in which the Formula 1 title battle finally came alive this year. It was also, however, the race in which it took a potentially decisive turn, putting a huge dent in George Russell's hopes of beating his 19-year-old Mercedes team-mate Kimi Antonelli to the
3 hours ago
CBSE Class 12 answer sheet scanned copies application window ends today, direct link hereCBSE Class 12 answer sheet scanned copies application window will close today, May 25, 2026. The direct link to apply is given here. Published on: May 25
3 hours ago
Microsoft techie couple in Noida breaks down ₹1.6 lakh monthly expenses, says city feels balanced despite rising costsA Microsoft couple in Noida revealed they spent around ₹1.6 lakh monthly while balancing work, lifestyle and family needs. Published on: May 25
3 hours ago
A CBSE Class 12 student has raised serious concerns over the board’s re-evaluation process after claiming the Physics answer sheet uploaded under his roll number does not belong to him. The student shared comparisons of multiple answer sheets and demanded an urgent investigation into the alleged
3 hours ago
Thyroid disorder cases have been gradually rising over the past few years, especially in younger adults and the younger working generations. Even though genes and autoimmune disorders play a role, the way we live our lives is becoming a reason for thyroid problems. We speak to Dr Aravind Badiger
3 hours ago
Sandhu finishes T-63, Sterne wins after gap of 13 yearsSandhu finishes T-63, Sterne wins after gap of 13 years Published on: May 25, 2026 1:47 PM IST PTI Share via Copy link Rinkven , Indian golfer Yuvraj Sandhu endured a difficult final day to finish T-63 at the Soudal Open here
3 hours ago
Cardiologist reveals the real cause of heart attacks that most people overlook and it’s not just ‘bad cholesterol’Could your gut health be affecting your heart? A cardiologist explains how inflammation, poor sleep, stress, and unhealthy habits may raise heart attack risk. Published on: May 25
6 hours ago
