OpenAI and Tata Partner to Build AI Data Centers in India
OpenAI and India’s Tata Consultancy Services Ltd (TCS) announced on Thursday that they will work together to develop local data centers as part of OpenAI’s ambitious Stargate initiative.
According to a joint statement, the partners plan to build a data center with an initial capacity of 100 megawatts, scalable up to 1 gigawatt over time. OpenAI will become the first customer of TCS’s expanding data center business, marking a significant milestone for both companies.
The agreement was formally unveiled by Tata Sons Chairman N. Chandrasekaran at the India AI Impact Summit.
Strengthening AI Infrastructure in India
OpenAI stated that the new infrastructure will allow its most advanced artificial intelligence models to operate securely within India. This move is expected to reduce latency while meeting strict data residency, security, and compliance standards, particularly for mission-critical and government-related workloads.
The partnership forms part of a broader strategy under the “OpenAI for India” initiative. As part of this expansion, OpenAI also confirmed plans to open its first offices in the country.
Expanded Collaboration Across Tata Group
Beyond the data center project, Tata Group will deploy ChatGPT Enterprise across its workforce in the coming years. Meanwhile, TCS intends to integrate OpenAI’s Codex tool into its software development processes, further embedding AI solutions within its operations.
Following the announcement, TCS shares climbed nearly 2% on Thursday. The partnership provided a boost to the stock after recent concerns that rapid AI disruption could negatively impact traditional IT service providers.
India Emerges as a Key AI Market
The deal comes during a wave of partnerships between Indian firms and global AI leaders, coinciding with an AI summit held in New Delhi. India has quickly established itself as one of the world’s fastest-growing artificial intelligence markets.
OpenAI recently revealed that it has more than 100 million weekly users in India, highlighting the country’s strategic importance.
The Indian government is also actively encouraging AI investment. Under the 2026–2027 budget, foreign cloud service providers are permitted to operate tax-free in India for the next two decades, further strengthening the nation’s position as a global AI hub.
