OpenAI is significantly expanding its presence in India through a strategic partnership with the Tata Group, securing 100 megawatts of AI-ready data center capacity with plans to scale up to 1 gigawatt. This move underscores India’s growing importance as a key market for the artificial intelligence leader and represents a substantial investment in local infrastructure to meet increasing demand and address data residency requirements.
The collaboration, announced on Thursday, is a core component of OpenAI’s Stargate project, a multi-year, $500 billion initiative launched in 2025 aimed at building AI data centers globally and accelerating enterprise adoption of AI technologies. Tata Consultancy Services (TCS) will be the first customer of its newly launched HyperVault data center business, initially providing 100 megawatts of capacity to OpenAI. This partnership extends beyond infrastructure, encompassing the deployment of ChatGPT Enterprise across Tata’s workforce and the standardization of AI-native software development using OpenAI’s tools.
India has emerged as a critical growth market for OpenAI, boasting over 100 million weekly ChatGPT users, including students, teachers, developers and entrepreneurs, according to CEO Sam Altman. This widespread adoption is driving the demand for localized infrastructure to reduce latency, enhance security, and comply with India’s data localization and digital infrastructure regulations. The ability to run advanced AI models within India is crucial for serving regulated sectors and government workloads.
Expanding AI Capabilities Through Collaboration
The initial 100-megawatt commitment represents a significant investment in AI infrastructure, which demands substantial power for the graphics processing units (GPUs) used in large-scale model training and inference. Scaling to 1 gigawatt would position the Tata facility among the world’s largest AI-focused data centers, highlighting OpenAI’s long-term ambitions in the region. Financial details of the agreement, including whether OpenAI is investing directly in HyperVault or leasing capacity, have not been disclosed.
TCS secured approximately $2 billion in backing from private equity firm TPG in November 2025 to develop AI-ready infrastructure under the HyperVault platform, designed to support large-scale compute workloads for both hyperscalers and enterprise customers. TechCrunch reports that the partnership will also see OpenAI expand its certification programs in India, with TCS becoming the first participating organization outside of the United States.
Enterprise AI Rollout and Workforce Development
Beyond the data center build-out, the Tata Group plans to roll out ChatGPT Enterprise to its workforce, starting with hundreds of thousands of employees at TCS, potentially representing one of the largest enterprise AI deployments globally. TCS will also leverage OpenAI’s Codex tools to standardize AI-native software development across its engineering teams. N Chandrasekaran, Chairman of Tata Sons, stated that the partnership will contribute to building “state-of-the-art AI infrastructure in India” and upskilling the country’s workforce for the AI era.
OpenAI is also expanding its physical presence in India, planning to open new offices in Mumbai and Bengaluru to complement its existing operations in New Delhi. This expansion will support enterprise partnerships, developer engagement, and regulatory coordination as OpenAI scales its footprint in the country. The announcement coincides with the AI Impact Summit in New Delhi, where industry leaders including Sam Altman, CEO of OpenAI, Anthropic CEO Dario Amodei, and Google CEO Sundar Pichai are gathering to discuss the future of AI.
OpenAI has been actively forging partnerships with Indian companies, including Pine Labs, JioHotstar, Eternal, Cars24, HCLTech, PhonePe, CRED, and MakeMyTrip, to integrate its models across various consumer platforms, enterprise systems, and digital payment infrastructure. Moneycontrol notes that this comprehensive approach signals OpenAI’s most significant effort yet to establish a strong AI ecosystem within India.
As OpenAI continues to expand its global infrastructure and enterprise partnerships, its investment in India, coupled with the Tata Group’s extensive reach and expertise, positions both companies for significant growth in one of the world’s fastest-growing digital economies. The collaboration is expected to accelerate AI adoption across various sectors and contribute to the development of a skilled AI workforce in India.
What comes next will be the execution of the Stargate project’s ambitious scaling plans, and the integration of OpenAI’s technologies into Tata’s diverse businesses. The success of this partnership will likely serve as a blueprint for future collaborations as OpenAI seeks to expand its global reach and impact.
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