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

OpenAI's ChatGPT in India

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

OpenAI announced on Thursday that the partnership with Tata Group is part of its Stargate project, which aims to build AI-ready infrastructure and expand the company’s adoption globally. OpenAI will be the first customer of Tata Consultancy Services’ HyperVault data center business, starting with a capacity of 100 megawatts. The agreement also includes implementation of ChatGPT Enterprise across Tata’s workforce and standardization of AI-native software development through OpenAI’s tools.

The partnership, which falls under the “OpenAI for India” initiative, highlights the company’s expanding footprint in the country, which according to CEO Sam Altman’s latest estimates has more than 100 million weekly ChatGPT users spanning students, teachers, developers and entrepreneurs. The scale of adoption has positioned India as one of OpenAI’s key growth markets as it deepens corporate and infrastructure investment in the country.

The local data center capacity will enable OpenAI to run its most advanced models in India, reducing latency for users while meeting data residency, security and compliance requirements of regulated sectors and government workloads. Domestic computer hosting is essential for businesses that handle sensitive data and operate under data localization and digital infrastructure regulations. These circumstances may expand OpenAI’s access to corporate customers who require in-country processing.

An initial capacity of 100 megawatts represents a significant commitment in AI infrastructure, where model training and inference at scale requires power-hungry clusters of graphics processing units, or GPUs. Scaling to 1 gigawatt 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.

In addition to infrastructure, OpenAI and the Tata Group will pursue a strategic corporate collaboration aimed at accelerating AI adoption across Tata’s businesses. The conglomerate 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 would be among the largest enterprise AI deployments 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 OpenAI’s partnership would help build “state-of-the-art AI infrastructure in India” while supporting efforts to skill the country’s workforce for the AI ​​era.

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The financial terms of the deal were not disclosed, including whether OpenAI is making a capital investment in HyperVault or leasing 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 around INR 180 billion (approx. USD 2 billion) in planned investment 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 certifications are designed to help professionals build practical AI skills across roles and industries, the company said. The move follows OpenAI’s recent partnerships with leading Indian 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 corporate partnerships, 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 Pichai will join Indian startups and companies showcasing AI applications across sectors such as finance, healthcare and education.

OpenAI has expanded its presence in India through partnerships with companies including Pine Labs, JioHotstar, Eternal, Cars24, HCLTech, PhonePe, CRED and MakeMyTrip as it seeks to integrate its models across consumer platforms, enterprise systems and digital payment infrastructure in one of the world’s largest internet markets.

Together, the data center build-out, enterprise deployments and expanding partner ecosystem signal OpenAI’s most comprehensive effort yet to anchor advanced AI infrastructure and applications in India.

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