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

OpenAI has partnered with India’s Tata conglomerate to secure 100 MW of AI-ready data center capacity in the country, with plans to expand to 1 GW. The move is part of a broader drive to deepen the company’s footprint 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 AI-ready infrastructure and expand enterprise adoption globally. OpenAI will become the first client for Tata Consultancy Services’ HyperVault data center business, starting with a capacity of 100 MW. The deal also includes deploying ChatGPT Enterprise across Tata’s workforce and standardizing native AI software development through OpenAI tools.

This partnership, which falls under the ‘OpenAI for India’ initiative, highlights the company’s expanding footprint in the country, which according to recent estimates from CEO Sam Altman has over 100 million weekly ChatGPT users that include students, educators, developers and entrepreneurs. The scale of adoption has positioned India as one of the most important growth markets for OpenAI as it deepens enterprise and infrastructure investments in the country.

The on-premises data center capacity will allow OpenAI to run its most advanced models within India, reducing latency for users while meeting the data residency, security and compliance requirements of regulated sectors and government workloads. Hosting compute locally is critical for organizations that handle sensitive data and operate under data localization and digital infrastructure rules. These circumstances could expand OpenAI’s reach to enterprise customers with in-country processing needs.

An initial capacity of 100 megawatts represents a significant commitment in the context of AI infrastructure, where model training and large-scale inference require power-hungry clusters of graphics processing units, or GPUs. Expanding to 1 GW over time would place the Tata facility among the largest AI-focused data center deployments globally, underscoring the scale of OpenAI’s long-term ambitions in India.

Along with infrastructure, OpenAI and the Tata Group will continue a strategic enterprise collaboration aimed at accelerating the adoption of AI across Tata’s businesses. The group plans to roll out ChatGPT Enterprise to its workforce over the coming years, starting with hundreds of thousands of employees at Tata Consultancy Services (TCS), in what ranks among the largest enterprise AI deployments globally. TCS also intends to use OpenAI’s Codex tools to standardize native AI software development across its engineering teams.

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

Financial terms of the deal were not disclosed, including whether OpenAI makes a capital investment in HyperVault or leases the capacity.

In November 2025, TCS secured backing from private equity firm TPG to develop AI-ready infrastructure in India under its HyperVault data center business. The platform is backed by approximately INR 180 billion (~US$2 billion) of planned investments, and is designed to support large-scale computing workloads for hyperscalers and enterprise customers.

OpenAI will also expand its certification programs in India, with TCS becoming the first participating organization outside the US. The company said the certificates are designed to help professionals build practical AI skills across roles and industries. The move comes on the heels of OpenAI’s recent partnerships with leading Indian institutions in the fields of 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 its operations in the country. This expansion is expected to support corporate partnerships, developer engagement and local regulatory coordination as the company expands its presence in India.

The announcement comes as India hosts the AI ​​Impact Summit in New Delhi, where global AI leaders, including Sam Altman, Anthropic CEO Dario Amodei and Google CEO Sundar Pichai, will participate along with Indian startups and institutions showcasing AI applications across sectors such as finance, healthcare and education.

OpenAI is 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, enterprise systems and digital payments infrastructure in one of the world’s largest internet markets.

Together, the establishment of the data center, enterprise deployment, and expansion of the partner ecosystem mark OpenAI’s most comprehensive push yet to anchor advanced AI infrastructure and applications in India.