Home Technology OpenAI taps Tata for 100MW AI data center capacity in India, targets...

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

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

OpenAI has partnered with India’s Tata Group to secure 100MW of AI-enabled data center capacity in India, with plans to expand to 1GW. The move is part of a broader effort to deepen the company’s corporate and infrastructure presence in one of its fastest-growing markets.

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

This partnership, part of the “OpenAI for India” initiative, highlights the company’s expansion of its presence in the country. A recent estimate by CEO Sam Altman puts ChatGPT’s weekly user base at more than 100 million, encompassing students, teachers, developers and entrepreneurs. The scale of adoption makes India one of the most important growth markets for OpenAI as corporate and infrastructure investments deepen.

Local data center capacity allows OpenAI to run its most advanced models within India, meeting data residency, security and compliance requirements for regulated sector and government workloads while reducing latency for users. In-country compute hosting is critical for businesses that process sensitive data and operate under data localization and digital infrastructure rules. This situation could expand OpenAI’s reach to enterprise customers that require domestic processing.

The initial 100 megawatt capacity represents a significant effort in terms of AI infrastructure, requiring clusters of power-hungry graphics processing units (GPUs) for large-scale model training and inference. Expanding to 1 gigawatt over time will position the Tata facility as one of the largest AI-centric data center deployments globally, underscoring the scale of OpenAI’s long-term ambitions in India.

In addition to infrastructure, OpenAI and Tata Group will pursue strategic enterprise collaboration aimed at accelerating AI adoption across Tata businesses. Large enterprises plan to deploy ChatGPT Enterprise to their employees over the next few years, starting with hundreds of thousands of employees at Tata Consultancy Services (TCS), one of the largest enterprise AI deployments globally. TCS also plans to use OpenAI’s Codex tools to standardize AI-based software development across its engineering teams.

N Chandrasekaran, chairman of Tata Sons, said OpenAI’s partnership will help build “India’s cutting-edge AI infrastructure” while supporting efforts to prepare the country’s workforce for the AI ​​era.

Tech Crunch Event

Boston, Massachusetts
|
June 23, 2026

Financial terms of the deal, including whether OpenAI will make a capital investment or lease capacity from HyperVault, were not disclosed.

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

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

OpenAI plans to deepen its domestic business by opening new offices in Mumbai and Bengaluru later this year and expanding its existing presence in New Delhi. The expansion is expected to support corporate partnerships, developer engagement and local regulatory alignment as the company expands its presence in India.

The announcement comes as India hosts the AI ​​Impact Summit in New Delhi. At this event, global AI leaders such as Sam Altman, Anthropic CEO Dario Amodei, and Google CEO Sundar Pichai will work with Indian startups and companies to showcase AI applications across fields such as finance, healthcare, and education.

OpenAI has been expanding its presence in India through partnerships with companies such as Pine Labs, JioHotstar, Eternal, Cars24, HCLTech, PhonePe, CRED, MakeMyTrip and others, and is seeking to embed its model across consumer platforms, enterprise systems and digital payments infrastructure in one of the world’s largest internet markets.

Building data centers, enterprise deployments and expanding its partner ecosystem marks OpenAI’s most comprehensive push to anchor advanced AI infrastructure and applications in India.

Exit mobile version