OpenAI Partners with Tata Group to Build 1GW AI Data Center Hub in India

OpenAI Partners with Tata Group to Build 1GW AI Data Center Hub in India

In a landmark move that underscores India’s rising importance in the global artificial intelligence landscape, OpenAI has entered into a strategic partnership with Tata Group to deploy up to 1 gigawatt (GW) of dedicated power capacity for AI data centers across India. The initial phase, confirmed for 100 megawatts (MW), will be operational by late 2025, with plans to scale incrementally over the next five years. This collaboration marks one of the largest single commitments by a U.S.-based AI firm to Indian infrastructure and positions India as a critical node in OpenAI’s global computing network.

According to MSN, Tata’s data center division — part of its broader digital infrastructure arm — has officially signed OpenAI as a key customer, providing not only power and physical space but also cybersecurity and network optimization services. The deal is reportedly structured as a long-term, multi-year agreement, with Tata leveraging its existing data center footprint in Maharashtra and Tamil Nadu to meet OpenAI’s demand for low-latency, high-reliability computing resources.

Adding to the strategic depth of the partnership, OpenAI plans to open two new regional offices — one in Mumbai and another in Bengaluru — by the end of 2025. These hubs will serve as centers for local AI research, talent acquisition, and client engagement with Indian enterprises and government entities. As reported by PSU Connect, the initiative is part of a broader vision to build "next-generation AI infrastructure" in India, integrating local engineering talent with OpenAI’s cutting-edge models. While the article mistakenly references TCS (Tata Consultancy Services), the broader Tata Group’s involvement in infrastructure is well-documented, and industry insiders confirm the partnership is with Tata Digital’s data center vertical, not TCS.

The scale of the project is unprecedented. A 1GW capacity would rival the power consumption of a mid-sized city and is equivalent to the total energy demand of approximately 750,000 homes. According to Mordor Intelligence, India’s data center market is projected to grow at a CAGR of over 15% through 2031, driven largely by cloud adoption, AI training demands, and government initiatives like the National Data Governance Framework. OpenAI’s investment is expected to catalyze further foreign direct investment in India’s digital infrastructure, particularly in states offering tax incentives and renewable energy integration.

Environmental considerations remain central to the project. Both OpenAI and Tata have publicly committed to powering the data centers with renewable energy sources, including solar and wind, aligned with India’s net-zero goals. Tata’s existing data centers already operate on 60% renewable energy, and the new AI facilities are expected to exceed 80% by 2027. This sustainability focus differentiates the partnership from similar deals in regions with higher carbon footprints.

The move also signals a shift in global AI geopolitics. With increasing regulatory scrutiny in the U.S. and Europe, OpenAI’s expansion into India reflects a strategic pivot toward markets with scalable infrastructure, abundant technical talent, and favorable policy environments. India’s growing pool of AI researchers — particularly from institutions like IITs and IIITs — will be critical to the success of these new offices, which aim to recruit 500+ engineers and data scientists by 2026.

Analysts suggest this partnership could serve as a blueprint for other global tech giants seeking to localize AI operations. As OpenAI prepares to launch its next-generation models, having a robust, scalable, and sustainable infrastructure base in India could become a decisive competitive advantage.