OpenAI has signed a multi-year partnership with Tata Group companies to build AI-ready data center capacity in India, starting with 100 megawatts and carrying an option to scale to 1 gigawatt over time. The agreement also covers a wider enterprise push, including rolling out ChatGPT Enterprise to parts of Tata’s workforce and using OpenAI tools in software development.
OpenAI said the partnership is tied to its Stargate project to expand AI-ready infrastructure and enterprise adoption globally, and it described the deal as part of an “OpenAI for India” initiative. Tata Consultancy Services (TCS) said its HyperVault unit will work with OpenAI on the infrastructure buildout in India, beginning with 100MW and a potential expansion to 1GW.
100MW first phase, 1GW option
Under the first phase of the partnership, TCS is set to build data centers with 100 megawatts of electric power capacity, with an option to scale to 1 gigawatt. TechCrunch reported that OpenAI will become the first customer of TCS’ HyperVault data center business, beginning with 100MW of capacity. TechCircle also described the relationship as a multi-year agreement and said the initial 100MW phase includes an option to scale to 1GW.
TechCircle said the planned facilities are expected to support high-density, liquid-cooled AI workloads and run on green energy. NDTV noted that AI data centers are being built at scale globally, while also highlighting concerns about electricity demand and water use for cooling. Financial terms of the OpenAI-Tata arrangement were not disclosed, according to TechCrunch.
ChatGPT Enterprise and software tools
Alongside the infrastructure plans, the companies said the partnership includes access to a business version of ChatGPT for thousands of Tata employees. TechCircle reported that “several thousand” Tata Group employees will get access to Enterprise ChatGPT as part of the rollout. TechCrunch reported that the deal includes deploying ChatGPT Enterprise across Tata’s workforce and described plans to standardize AI-native software development through OpenAI’s tools.
Both TechCrunch and TechCircle said TCS plans to deploy OpenAI’s Codex tools to support software engineering work. TechCircle added that the broader collaboration will span internal AI adoption across Tata companies, joint development of industry-specific solutions, and joint go-to-market efforts in India and overseas. NDTV said the companies framed the infrastructure as a way to power next-generation AI workloads and help position India as a global AI hub.
Why local capacity matters
TechCrunch said the local data center capacity would allow OpenAI to run its most advanced models within India, aiming to reduce latency while meeting data residency, security, and compliance needs for regulated sectors and government workloads. The same report said hosting compute domestically can be important for enterprises that handle sensitive data and operate under data localization and digital infrastructure rules. NDTV described the scale of computing capacity involved as “hyperscale.”
OpenAI’s CEO Sam Altman has said India has more than 100 million weekly ChatGPT users, according to TechCrunch. TechCircle also said India has more than 100 million weekly active users, attributing the figure to OpenAI. TechCrunch described India as one of OpenAI’s most important growth markets as the company expands enterprise and infrastructure investments in the country.
Training, social impact, and India summit context
NDTV said the partnership also includes an initiative aimed at providing AI training and resources to Indian youth so they can apply AI responsibly and efficiently at scale. TechCircle reported that the OpenAI Foundation and TCS will collaborate on training, resources, and technology toolkits for Indian youth and NGOs, targeting improved livelihoods for at least one million young people. TechCrunch said OpenAI will expand its certification programs in India and that TCS will be the first participating organization outside the United States.
The announcements landed as India hosts the AI Impact Summit in New Delhi, according to NDTV and TechCrunch. NDTV reported that OpenAI CEO Sam Altman was scheduled to speak on Thursday at the summit, and it also referenced other tech industry announcements made during the week. TechCrunch reported that OpenAI plans to open new offices in Mumbai and Bengaluru later this year, adding to its existing presence in New Delhi.
