OpenAI collaborates with Tata Group of India to build local data centers

LootboxPhobia · 2026-02-19T04:54:38+00:00

OpenAI partners with Tata Consultancy Services in India to establish a local data center with a capacity of 100 MW, scalable to 1 GW in the future. This move aims to meet the demand for artificial intelligence services in the Indian market while ensuring data security and compliance. OpenAI plans to set up an office in India.

LootboxPhobia

2026-02-19 04:54:38

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Investing.com - OpenAI and Tata Consultancy Services India (NSE:TCS) announced on Thursday that they will collaborate to build a local data center as part of the artificial intelligence startup Stargate’s plans.

OpenAI stated in a release that the partners will build a 100-megawatt data center capable of expanding to 1 gigawatt. This AI startup will become TCS’s first customer for its data center business.

Tata Group Chairman N. Chandrasekaran also announced the deal at the India AI Impact Summit.

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OpenAI said, “This infrastructure will enable OpenAI’s most advanced models to operate securely in India, providing lower latency while meeting data residency, security, and compliance requirements for mission-critical and government workloads.”

OpenAI added that this move is part of the broader “OpenAI India Plan,” which also includes opening its first office in India.

Under another agreement, Tata Group, the parent company of TCS, will deploy ChatGPT Enterprise for its employees over the next few years, and TCS plans to use OpenAI’s Codex for software development.

TCS’s stock rose nearly 2% on Thursday after the announcement, providing some relief after recent concerns about AI-related disruptions had recently battered its stock price.

This deal comes amid a series of collaborations between Indian companies and global AI giants this week, as India hosts the AI Summit in its capital, New Delhi.

India has quickly become a major market for AI, with one of the largest numbers of AI users worldwide. OpenAI recently reported that over 100 million users in the country use its services weekly.

The Indian government is also actively attracting more AI-related investments, with the recent 2026-2027 budget allowing foreign cloud service providers to operate tax-free in the country for the next two decades.

This article was translated with the assistance of AI. For more information, see our Terms of Use.

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