OpenAI has partnered with the Tata Group to secure 100 megawatts of AI-ready data center capacity. The company also plans to expand this to 1 gigawatt over time. If that becomes true, it would be one of the largest AI-focused infrastructure projects in the world.
Under this deal, OpenAI will become the first customer of Tata Consultancy Services’ HyperVault data center business. The initial commitment of 100MW is already substantial.
The data center capacity will be provided through TCS’ HyperVault platform, which has backing from private equity firm TPG. The platform is reportedly supported by around ₹180 billion in planned investment. However, financial details of the OpenAI deal have not been disclosed. It is unclear whether OpenAI is investing capital directly or leasing capacity.
India has quietly become one of OpenAI’s most important markets. According to CEO Sam Altman, India now has more than 100 million weekly ChatGPT users. These users include students, teachers, developers, founders, and enterprises. With that scale of usage, running infrastructure locally starts to make business sense.
By hosting compute inside India, OpenAI can reduce latency for users and meet data residency and compliance requirements. Many sectors, such as banking, healthcare, and government, demand that sensitive data stay within national borders. Local infrastructure makes it easier to win those customers.
If the project eventually scales to 1GW, it would signal that OpenAI is not just testing the waters. It would mean a long-term commitment to India as a core AI hub.
The deal goes beyond data centers. The partnership includes rolling out ChatGPT Enterprise across Tata’s workforce. It will begin with hundreds of thousands of employees at Tata Consultancy Services, one of the largest IT services companies in the world.
TCS also plans to use OpenAI’s Codex tools to standardize AI-native software development across its engineering teams. If executed well, this could reshape how one of India’s biggest tech employers builds software.
Tata Sons Chairman N. Chandrasekaran said the partnership will help build advanced AI infrastructure in India while preparing the workforce for the AI era. That focus on skilling is important. India has a massive developer base, and structured AI certification programs could accelerate enterprise adoption.
In fact, TCS will become the first organization outside the United States to participate in OpenAI’s certification programs. This move shows that OpenAI sees India not just as a user market, but as a talent and delivery base.
OpenAI also plans to open new offices in Mumbai and Bengaluru later this year. It already has a presence in New Delhi. This expansion will support enterprise sales, developer relations, and regulatory engagement.
