Tata Group teams up with OpenAI for AI expansion in India: How it could transform Indian businesses

The AI infrastructure in India has been given a significant boost when Tata Consultancy Services (TCS) became the first company to sign OpenAI as a new data centre business. The agreement will start with a capacity of 100 megawatts under the Stargate initiative which is a global AI infrastructure initiative aimed at constructing massive data centres. Advanced AI models will be trained and deployed in this data centers. The step will enhance the Indian presence in the fast-growing artificial intelligence ecosystem and will point towards the long-term investment in high-performance computing infrastructure.

TCS partnerships with OpneAI

The partnership will result in TCS building a 100MW AI-ready data centre to support advanced AI workloads. The facility has the potential to scale up to 1 gigawatt in the future. A 1GW data centre is said to be large scale and it demanded huge amounts of capital investment, energy planning and development of infrastructure. In this deal, TCS had already declared its intention to invest up to $7 billion in its data centre company.

.@TataCompanies and @OpenAI have announced a landmark collaboration to power AI‑led innovation globally. Through enterprise-ready tools, industry-specific AI solutions, and next‑generation AI infrastructure, this partnership is set to accelerate meaningful and responsible AI… pic.twitter.com/as2YVp678g

— Tata Consultancy Services (@TCS) February 19, 2026

AI Models Training

The facility will facilitate training of AI models, inference processes and enterprise AI applications. TCS is planning to develop secure, scalable and power efficient infrastructure, using green energy sources, through its HyperVault unit. The company intends to position India as a reliable hub for global AI infrastructure deployment.

Partnership will Work on AI Adoption

In addition to the development of infrastructure, the partnership will involve increased AI implementation in the field of Tata Group companies. ChatGPT Enterprise will be rolled out in stages in various Tata companies. The first phase will allow thousands of employees to have access and enhance productivity and innovation. Other OpenAI tools like Codex will also be used by TCS to improve the efficiency of software development and to streamline the engineering process.

Global AI Investment Hub

Both companies are intending to develop enterprise-specific AI solutions in the industry. TCS will incorporate OpenAI solutions into the client systems across the globe and assists companies to go through the digital transformation faster and embrace AI-powered processes.

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There has been a high rate of AI investments in India. Technology giants such as Google, Amazon, Meta and Microsoft are increasing their presence in the country by setting up more data centres. Reliance and Adani are Indian conglomerates that are also investing more in AI and digital infrastructure. Having an excellent adoption rate of AI, OpenAI has reported more than 100 million weekly ChatGPT users in India.