OpenAI and Tata Partner to Build AI Data Centers in India

Updated on: February 19, 2026

OpenAI and Tata have teamed up to build large scale AI data center capacity in India, while rolling out enterprise AI tools and training programs that aim to boost adoption across business and society.

Quick Summary – TLDR:

OpenAI and Tata Group are partnering on AI infrastructure starting at 100MW, with an option to scale to 1GW.
ChatGPT Enterprise will be deployed across Tata’s workforce, starting with hundreds of thousands of TCS employees.
The deal links infrastructure, enterprise transformation, and upskilling, including OpenAI Certifications expanding in India.
The collaboration is positioned under OpenAI for India and OpenAI’s broader Stargate infrastructure push.

What Happened?

At the India AI Impact Summit 2026 in Delhi, OpenAI announced a foundational partnership with the Tata Group and Tata Consultancy Services to expand AI adoption and build local compute capacity. The plan starts with 100 megawatts of AI data center capacity through TCS HyperVault, with a pathway to scale up to 1 gigawatt over time.

Tata Group announces a partnership with OpenAI to create India’s first AI-optimized large-scale data center, a significant step in boosting the country’s AI infrastructure pic.twitter.com/u0xN9wvpef
— Reuters Business (@ReutersBiz) February 19, 2026

A big infrastructure push built around local compute

A central part of the partnership is building AI ready data center capacity in India designed to meet data residency, security, and compliance needs. OpenAI will become the first customer of TCS HyperVault, starting with 100MW of capacity and an option to expand to 1GW.

The goal is to run OpenAI’s advanced models within India, which can reduce latency for users while helping regulated industries and government linked workloads meet local processing needs. In practical terms, local compute can make it easier for large enterprises to adopt AI tools at scale, especially when they handle sensitive data and need stronger controls.

TCS launched HyperVault in 2025 with a focus on delivering large scale AI ready infrastructure, including liquid cooled data centers, high rack density, and connectivity across key cloud regions. The effort is also positioned as being powered by green energy.

Enterprise AI rollout across Tata and beyond

Alongside the infrastructure plan, OpenAI and Tata Group are moving on a broad enterprise collaboration. Several thousand Tata Group employees are set to get access to Enterprise ChatGPT as a starting point, with plans to expand deployments over the next several years.

One of the standout details is the scale expected at Tata Consultancy Services. Tata Group plans to deploy ChatGPT Enterprise across its employees, starting with hundreds of thousands of TCS employees, which would place it among the largest enterprise AI deployments in the world.

TCS will also use OpenAI Codex to standardize AI native software development across engineering teams, aiming to improve software delivery and productivity.

Industry specific agentic AI and joint go to market plans

The partnership is not just about internal deployment. OpenAI and TCS say they plan to build industry specific agentic AI solutions, combining OpenAI’s capabilities with TCS’s contextual knowledge across sectors.

TCS and OpenAI also plan joint go to market initiatives to help enterprises in India and globally deploy, integrate, and scale OpenAI’s AI platforms in ways that fit each organization’s needs. The focus here is on turning the underlying models into practical solutions that can be rolled out across large companies, rather than limiting AI to pilots.

OpenAI is also launching OpenAI for India, a nationwide initiative aimed at expanding access to AI and unlocking economic and societal benefits. OpenAI says India now has more than 100 million weekly ChatGPT users across students, teachers, developers, and entrepreneurs.

As part of the upskilling effort, OpenAI will expand OpenAI Certifications in India, with TCS becoming the first participating organization outside the United States. OpenAI also announced education partnerships that include more than 100,000 ChatGPT Edu licenses for institutions such as the Indian Institute of Management Ahmedabad and All India Institute of Medical Sciences, New Delhi, among others.

On social impact, the OpenAI Foundation and TCS plan to collaborate on AI training and resources for Indian youth, including toolkits for NGOs, with an objective of improving livelihoods for at least one million young people.

Sam Altman, CEO, OpenAI, said:

“

India is already leading the way in AI adoption, and with its talent, ambition, and strong government support, it is well placed to help shape its future. Through OpenAI for India and our partnership with Tata Group, we’re working together to build the infrastructure, skills, and local partnerships needed to build AI with India, for India, and in India, so that more people across the country can access and benefit from it.

N Chandrasekaran, Chairman, Tata Sons, said:

“

This deep collaboration between OpenAI and Tata Group marks a major milestone in India’s vision to become a global leader in AI. We are pleased to partner with OpenAI to create state-of-the-art AI infrastructure in India. This is a unique opportunity for OpenAI and TCS to transform industries. Together we will skill India’s youth and empower them to succeed in the AI era.

SQ Magazine Takeaway

I see this as one of the clearest signals yet that India is becoming a first class AI build location, not just a market for AI apps. The mix of local compute, a massive enterprise rollout, and real skills programs is exactly how you move from hype to impact. If OpenAI and Tata actually deliver the 100MW buildout fast and keep scaling, it will put serious pressure on every major enterprise in India to adopt AI sooner, and to do it responsibly with local compliance in mind.