OpenAI Secures 100MW AI Data Center Capacity from Tata Group in Landmark India Expansion

OpenAI Secures 100MW AI Data Center Capacity from Tata Group in Landmark India Expansion

In a strategic move signaling its aggressive global infrastructure push, OpenAI has entered into a landmark partnership with India’s Tata Group to secure 100 megawatts (MW) of dedicated power capacity for AI data centers, with ambitions to scale to a full gigawatt (GW) in the coming years. The agreement, confirmed by multiple industry sources, marks one of the largest single commitments by a generative AI firm to expand its physical computing footprint in emerging markets.

According to TechCrunch, the partnership is not limited to energy infrastructure. OpenAI plans to open new regional offices in Mumbai and Bengaluru later this year, establishing a permanent operational presence in India’s tech hub. These offices will serve as centers for engineering, partnerships, and customer support, reinforcing OpenAI’s commitment to localizing its AI ecosystem beyond the United States and Europe.

As part of the broader collaboration, Tata Consultancy Services (TCS), the global IT services arm of the Tata Group, will deploy ChatGPT Enterprise to hundreds of thousands of its employees. The initiative aims to standardize internal software development workflows using OpenAI’s Codex-powered tools, accelerating code generation, debugging, and documentation across TCS’s global client projects. This represents one of the largest enterprise adoptions of generative AI tools by a single organization to date.

The 100MW power allocation will be sourced from Tata’s existing and under-construction data center campuses, leveraging the group’s extensive portfolio of energy-efficient facilities. Data Center Dynamics reports that Tata has been strategically positioning itself as a preferred partner for global hyperscalers due to its access to renewable energy sources and robust regulatory support in key Indian states such as Maharashtra and Karnataka. The company’s ability to offer scalable, low-carbon power makes it an ideal partner for AI firms facing mounting pressure to reduce their environmental footprint.

Analysts note that India’s rapid digital transformation, abundant engineering talent, and favorable government policies on data localization and foreign investment are driving this surge in AI infrastructure investment. OpenAI’s move follows similar expansions by Microsoft, Google, and Amazon, but stands out for its scale and integration with a domestic conglomerate. The projected 1GW capacity — enough to power a small city — would make this one of the largest AI-specific data center deployments outside the U.S. and China.

The partnership also raises questions about data governance and AI sovereignty. While OpenAI has emphasized compliance with Indian data protection regulations, the integration of ChatGPT Enterprise into TCS’s core operations — which serve clients across finance, healthcare, and government sectors — will require stringent safeguards. Experts warn that without transparent auditing mechanisms, enterprise AI adoption could introduce new cybersecurity and privacy risks.

For India, the deal is a major milestone in its ambition to become a global AI powerhouse. The Tata Group’s involvement lends credibility and local legitimacy to OpenAI’s expansion, potentially paving the way for similar partnerships with other Indian conglomerates. Meanwhile, OpenAI gains not only critical infrastructure but also deep access to India’s vast developer community and multilingual data ecosystems, which are vital for training next-generation AI models.

As the global race for AI dominance intensifies, this collaboration between Silicon Valley’s most influential AI startup and India’s oldest and most respected industrial group may well become a blueprint for future public-private tech alliances in the 21st century.