Technology & AI

OpenAI taps Tata for 100MW AI data center capacity in India, eyes 1GW

OpenAI has partnered with India’s Tata Group to secure 100 megawatts of AI-ready data center capacity in the country, with plans to reach 1 gigawatt. The move is part of a broader plan to deepen the company’s business and infrastructure in one of its fastest growing markets.

OpenAI announced on Thursday that the partnership with the Tata Group is part of its Stargate project, which aims to build an AI-friendly infrastructure and increase business adoption around the world. OpenAI will be the first enterprise customer of Tata Consultancy Services’ HyperVault data center, starting with a capacity of 100 megawatts. The agreement also includes deploying ChatGPT Enterprise to all Tata employees and standardizing the development of native AI software with OpenAI tools.

The partnership, which falls under the “OpenAI for India” program, highlights the company’s growth in the country, which according to the latest estimates from CEO Sam Altman has more than 100 million ChatGPT users including students, teachers, engineers and entrepreneurs. The adoption rate has positioned India as one of the growing markets for OpenAI as it deepens business and infrastructure investment in the country.

The data center’s local capacity will allow OpenAI to deploy its most advanced models within India, reducing user latency while meeting data residency, security, and compliance requirements for regulated sectors and government workloads. Home computing is essential for businesses that handle sensitive data and operate under data localization and digital infrastructure laws. These conditions can increase OpenAI’s reach to business customers who need to be processed in the country.

The initial capacity of 100 megawatts represents a major commitment in the context of AI infrastructure, where large-scale model training and inference requires power-hungry clusters of graphics processing units, or GPUs. Scaling up to 1 gigawatt over time will position Tata among the largest AI-focused data centers in the world, underscoring the magnitude of OpenAI’s long-term ambitions in India.

Beyond infrastructure, OpenAI and Tata Group will pursue business collaborations aimed at accelerating the adoption of AI across Tata’s businesses. The conglomerate plans to roll out ChatGPT Business to its employees in the coming years, starting with hundreds of thousands of Tata Consultancy Services (TCS) employees, in what will be among the largest AI companies deployed globally. TCS also intends to use OpenAI’s Codex tools to standardize AI-native software development across its engineering teams.

N Chandrasekaran, chairman of Tata Sons, said the OpenAI partnership will help build a “modern AI infrastructure in India” while supporting efforts to develop the country’s workforce in the AI ​​era.

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Financial terms of the deal were not disclosed, including whether OpenAI is investing heavily in HyperVault or leasing capacity.

In November 2025, TCS received funding from private equity firm TPG to develop AI-ready infrastructure in India under its HyperVault data center business. The platform is backed by approximately 180 billion (about $2 billion) in planned investment and is designed to support the massive computing workload of hyperscalers and enterprise customers.

OpenAI will also expand its certification programs in India, with TCS being the first participating organization outside the United States. The certifications are designed to help professionals build AI skills that work across roles and industries, the company said. This move follows OpenAI’s recent partnerships with India’s leading institutions in engineering, medicine, and design.

OpenAI plans to open new offices in Mumbai and Bengaluru later this year, adding to its existing presence in New Delhi as it deepens operations in the country. The expansion is expected to support business relationships, developer engagement, and local regulatory coordination as the company scales its footprint in India.

The announcement comes as India hosts its AI Impact Summit in New Delhi, where global AI leaders, including Sam Altman, Anthropic CEO Dario Amodei and Google CEO Sundar Photosi are participating along with Indian startups and businesses showcasing AI applications in sectors such as finance, healthcare, and education.

OpenAI has been expanding its presence in India through partnerships with companies including Pine Labs, JioHotstar, Eternal, Cars24, HCLTech, PhonePe, CRED, and MakeMyTrip, as it seeks to embed its models across consumer platforms, business systems and digital payment infrastructure in one of the world’s largest online marketplaces.

Together, the data center creation, enterprise deployment, and expanding partner ecosystem demonstrate OpenAI’s comprehensive push that will further strengthen the advanced AI infrastructure and applications in India.

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