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 enterprise and infrastructure footprint in one of its fastest-growing markets.
OpenAI announced on Thursday that the partnership with the Tata Group is part of its Stargate project, which aims to build AI-ready infrastructure and expand enterprise adoption globally. OpenAI will become the first customer of Tata Consultancy Services’ HyperVault data center business, beginning with 100 megawatts of capacity. The deal also includes deploying ChatGPT Enterprise across Tata’s workforce and standardizing 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 recent estimates from CEO Sam Altman 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 most important growth markets as it deepens enterprise and infrastructure investments in the country.
The local data center capacity 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. Hosting compute domestically is critical for enterprises that handle sensitive data and operate under data localization and digital infrastructure rules. These circumstances could widen OpenAI’s access to enterprise customers that require in-country processing.
An initial 100 megawatts of capacity represents a substantial commitment in the context of AI infrastructure, where large-scale model training and inference require 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, underlining the scale of OpenAI’s long-term ambitions in India.
Beyond infrastructure, OpenAI and Tata Group will pursue a strategic enterprise 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, beginning with hundreds of thousands of employees at Tata Consultancy Services (TCS), in what would rank 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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