OpenAI partners with Tata Group for 100MW AI data center in India, plans 1GW expansion

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OpenAI has secured a strategic partnership with India's Tata Group to build 100 megawatts of AI data center capacity, with ambitious plans to scale to 1 gigawatt. The collaboration marks OpenAI's largest infrastructure push in India, a market with over 100 million weekly ChatGPT users. The deal includes deploying ChatGPT Enterprise across Tata's workforce and positions India as a global AI hub.

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OpenAI and Tata Group Announce Major AI Infrastructure Partnership

OpenAI has formed a strategic partnership with India's Tata Group to secure 100 megawatts of AI data center capacity in the country, with plans to eventually scale to 1 gigawatt

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. The announcement, made at the AI Impact Summit in New Delhi, represents OpenAI's most comprehensive infrastructure push yet in one of its fastest-growing markets

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. OpenAI CEO Sam Altman attended the summit alongside other AI leaders, underscoring the significance of this collaboration for the company's global expansion strategy.

Stargate Project Extends to India Through TCS HyperVault

The AI data center buildout falls under OpenAI's Stargate project, which aims to build AI-ready infrastructure and expand enterprise adoption globally

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. OpenAI will become the first customer of TCS (Tata Consultancy Services)' HyperVault data center business, with the facility featuring purpose-built, liquid-cooled infrastructure designed to support next-generation AI workloads

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. The green-energy-powered data centers will offer high rack densities and connectivity across key cloud regions, addressing the power-hungry requirements of graphics processing units (GPUs) needed for large-scale model training and inference

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A 1 gigawatt data center typically costs between $35 billion to $50 billion, indicating the massive scale of investment involved

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. In November 2025, TCS secured backing from private equity firm TPG with approximately ₹180 billion (about $2 billion) in planned investment for its HyperVault platform

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ChatGPT Enterprise Deployment Across Tata Workforce

Beyond AI infrastructure in India, the strategic partnership includes deploying ChatGPT Enterprise across Tata Group's workforce over the coming years, beginning with hundreds of thousands of employees at TCS

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. This would rank among the largest enterprise AI deployments globally, enabling thousands of employees to access OpenAI's enterprise offering to boost productivity and innovation

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. TCS will also leverage OpenAI's Codex tools to standardize AI-native software development across its engineering teams, enhancing software engineering outcomes

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India Emerges as Critical Market for OpenAI

The partnership highlights India's position as one of OpenAI's most important growth markets, with CEO Sam Altman estimating more than 100 million weekly ChatGPT users in the country spanning students, teachers, developers, and entrepreneurs

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. Local compute workloads will allow OpenAI to run its most advanced models within India, reducing latency for users while meeting data residency, security, and compliance requirements for regulated sectors and government workloads

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. This domestic hosting capability is critical for enterprises handling sensitive data under India's data localization rules, potentially widening OpenAI's access to enterprise customers requiring in-country processing.

Tata Group's Vision for Domain-Centric AI Chips

Tata Group Chairman N Chandrasekaran revealed plans to produce domain-centric AI chips for multiple industries, with the first set expected to cater to the automotive sector

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. The conglomerate is adopting AI across the stack, from silicon to systems, AI-ready data centers to applications and AI agents

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. Chandrasekaran stated that the collaboration with OpenAI 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 partnership with AMD was also announced, combining world-class AI rack architecture with infrastructure engineering capabilities to create sustainable high-density AI capacity in India for global standards

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Positioning India as a Global AI Hub

The companies plan to jointly develop industry-specific agentic AI solutions, combining OpenAI's advanced platforms with TCS' contextual knowledge and domain expertise

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. TCS will deploy, integrate, and scale OpenAI's AI solutions for Indian and global enterprises under joint go-to-market initiatives

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. 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

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. The expansion is expected to support enterprise partnerships, developer engagement, and local regulatory coordination. OpenAI will also expand its certification programs in India, with TCS becoming the first participating organization outside the United States to help professionals build practical AI skills across roles and industries

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. This move comes as OpenAI is close to finalizing a funding round likely to bring in more than $100 billion, providing additional capital to build out its AI tools

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. The collaboration signals intensifying competition with Nvidia and other AI infrastructure players in India's rapidly growing market

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