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Tata Consultancy Services (TCS) has reinforced its position in the fast-growing AI infrastructure market after securing a $1-billion investment from TPG to accelerate the development of its AI-ready data centre platform, HyperVault. Following the announcement, Emkay Research reiterated its ‘ADD’ rating and Rs 3,250 share price target for the stock.

TPG’s $1 Billion Investment Boosts TCS’ AI Ambitions
According to Emkay Research, TCS has entered a Securities Subscription Agreement (SSA) and Shareholders’ Agreement (SHA) with TPG Terabyte Bidco Pte Ltd and its subsidiary HyperVault AI Data Center Ltd. The collaboration marks one of the largest private investments in India’s emerging AI infra space.

Both companies plan to jointly invest up to ₹180 billion, with TCS and TPG contributing in a 51:49 ratio. TPG’s funding, routed through TPG Rise Climate and the Global South Initiative, will translate into a 27.5%–49% stake in HyperVault, depending on the capital structure.

The deal includes a three-year lock-in period, with TCS retaining board majority while TPG secures up to two seats.

HyperVault Set to Drive AI-Ready Infrastructure Growth
The investment supports TCS’ ambitious plan to build 1GW+ AI-ready data centre capacity over the next few years, backed by advanced compute hardware, high-density liquid-cooled racks, and low-latency network capabilities.

“HyperVault is expected to deliver secure, reliable, large-scale AI-ready infra,” analysts noted, adding that India’s data centre market is already at ~1.5GW and projected to cross 10GW by 2030, with $94 billion in cumulative investments since 2019.

Emkay highlighted that leveraging hyperscaler partnerships and full-stack AI capabilities uniquely positions TCS “for delivering end-to-end digital solutions, combining cloud, compute, and connectivity beyond traditional colocation services.”

TCS Share Price Target: Why Analysts Remain Positive
Emkay Research continues to maintain an ADD rating on TCS, projecting stable earnings growth in the coming years. The brokerage values the stock at 21x Sep-27E EPS, setting a target price of ₹3,250, implying a modest upside from current levels.

In their evaluation, analysts pointed to consistent margins, strong cash flows, and the long-term potential of AI-driven revenue streams. The HyperVault partnership, they said, is a “strategic catalyst” that can enhance TCS’ competitiveness against global peers.

AI Infrastructure to Be Key Driver for TCS
With AI adoption accelerating worldwide, TCS’ deep push into data centres is expected to become a core pillar of its future growth strategy. The TPG partnership aligns with its multi-year $6–7 billion DC investment roadmap, giving analysts confidence in its medium-term performance and share price trajectory.

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