Tata Group and OpenAI partner to build 100MW AI data center in India

The partnership, announced Thursday, will see OpenAI secure 100 megawatts of AI-ready data center capacity from Tata Consultancy Services’ new HyperVault data center business, according to a TechCrunch report. This initial capacity is intended to be the foundation for a significant scaling of operations, with plans to eventually reach one gigawatt of power. The arrangement designates OpenAI as the inaugural customer for Tata’s HyperVault venture.

This infrastructure buildout is a core component of OpenAI’s broader “Stargate” project, an initiative focused on constructing the advanced computing infrastructure required for next-generation artificial intelligence development and deployment. The move signals a strategic deepening of OpenAI’s enterprise and physical footprint in a key growth market, moving beyond software provision to controlling the underlying hardware necessary for its complex AI models.

The commercial significance of India for OpenAI is substantial. TechCrunch notes that recent estimates from CEO Sam Altman indicate the country has amassed more than 100 million weekly ChatGPT users, a user base comprising students, teachers, developers, and entrepreneurs. This massive and rapid adoption has positioned India as one of the company's most critical growth markets outside the West.

Beyond the data center agreement, the partnership includes a significant software component. OpenAI will deploy its ChatGPT Enterprise product across the vast workforce of the Tata Group, one of India's largest and most storied conglomerates. The deal also involves standardizing AI-native software development within Tata using OpenAI’s suite of tools, effectively making the Indian corporation a flagship enterprise client and a case study for large-scale AI integration.

For the Tata Group, the collaboration represents a major validation and launch customer for its nascent HyperVault data center business unit. Partnering with a leading AI firm like OpenAI provides a powerful anchor tenant and positions Tata as a serious contender in the high-stakes market for AI computing infrastructure, both within India and globally. The group’s extensive experience in large-scale industrial projects and its deep roots in the Indian market were likely key factors in securing the partnership.

The initiative, falling under OpenAI’s “OpenAI for India” banner, highlights a strategic pivot to capture growth in emerging markets where AI adoption is accelerating rapidly. While many global technology giants have concentrated their AI infrastructure investments in North America and Europe, this partnership indicates a belief that meeting future computational demand will require a more geographically distributed approach to data center construction.

Details regarding the specific location of the data center facilities, the total financial investment, and a precise timeline for the build-out were not disclosed in the available reports. The planned scaling from 100 megawatts to one gigawatt suggests a long-term, multi-phase project that would represent one of the largest single investments in AI infrastructure within India to date.