OpenAI locks in 100MW AI data centre deal with Tata, targets 1GW in India

OpenAI is planting firmer roots in India, signing a deal with the Tata Group to secure 100 megawatts of AI-ready data centre capacity, with plans to scale that up to a hefty 1 gigawatt over time.

The partnership makes OpenAI the first customer of Tata Consultancy Services’ new HyperVault data centre business. For now, the agreement starts at 100MW, which is already a serious chunk of power in the world of AI infrastructure, where vast banks of GPUs chew through electricity to train and run large models.

If the planned 1GW expansion materialises, the facility would rank among the largest AI-focused data centre deployments globally. That scale tells you this is not a short-term experiment.

Why India, and why now?

India has quickly become one of OpenAI’s biggest markets. CEO Sam Altman recently said the country now has over 100 million weekly ChatGPT users, spanning students, teachers, developers and entrepreneurs. That level of adoption turns India from a promising market into a strategic one.

Running advanced models locally means lower latency for users and, crucially, compliance with India’s data localisation and security requirements. For sectors like finance, government and healthcare, being able to process data inside national borders is often non-negotiable. Local compute could make it easier for OpenAI to win large enterprise contracts that demand in-country infrastructure.

The Tata partnership also goes beyond hardware. Tata Consultancy Services (TCS) plans to deploy ChatGPT Enterprise across its workforce, starting with hundreds of thousands of employees.

It also intends to standardise AI-assisted software development using OpenAI’s Codex tools. In practical terms, that means AI is woven directly into how one of India’s largest IT services firms builds software.

Enterprise push gathers pace

The infrastructure deal sits under OpenAI’s broader “OpenAI for India” initiative, which focuses on enterprise adoption, skilling and partnerships. TCS will become the first organisation outside the US to participate in OpenAI’s certification programmes, aimed at building practical AI skills across industries.

TCS’s HyperVault platform itself is backed by roughly Rs 180 billion (about $2 billion) in planned investment, following support from private equity firm TPG last year. It is designed specifically for large-scale AI and high-performance workloads, rather than traditional enterprise hosting.

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OpenAI is also expanding its physical presence, with new offices planned in Mumbai and Bengaluru later this year, adding to its existing base in New Delhi. This proves that India is now a key operational hub for OpenAI.

The announcement lands as global AI leaders gather in New Delhi for the country’s AI Impact Summit. For OpenAI, it’s clear that India is not simply a growth story; it is becoming core infrastructure territory.