NEW DELHI — Feb. 19 (GeokHub) Artificial intelligence firm OpenAI will become the inaugural customer of Tata Consultancy Services’ newly launched data centre business, marking a significant step in India’s expanding AI infrastructure ambitions.
The partnership begins with 100 megawatts of capacity and forms part of Stargate, a $500 billion multi-year global initiative aimed at building large-scale AI data centres for training and inference workloads.
The agreement provides early momentum to TCS’s strategic pivot into the capital-intensive data centre sector. The company previously outlined plans to invest up to $7 billion to develop a 1-gigawatt data centre operation in India, signaling a long-term commitment to becoming a key infrastructure player in the AI economy.
India is rapidly emerging as a major destination for AI-related investments. Global technology giants including Google, Amazon, Meta Platforms, and Microsoft have all increased their infrastructure commitments in the country.
Domestic conglomerates such as Reliance Industries and Adani Group are also ramping up investments, intensifying competition to build data centre capacity capable of supporting next-generation AI systems.
The demand surge is being fueled by the rapid adoption of AI tools across businesses and consumers. OpenAI said India now accounts for more than 100 million weekly users of ChatGPT, underscoring the country’s growing role in the global AI ecosystem.
Broader AI Integration Within Tata Group
Beyond infrastructure, the collaboration extends into enterprise adoption. Tata Group, the parent company of TCS, plans to deploy ChatGPT Enterprise solutions across multiple business units over the coming years. The rollout is expected to begin with hundreds of thousands of employees, integrating AI-driven productivity tools across operations.
Industry analysts view the deal as strategically significant. For OpenAI, it secures local infrastructure support in one of its fastest-growing markets. For TCS, it validates its multi-billion-dollar expansion into AI-focused data centres at a time when computing demand for model training and inference is intensifying worldwide.
The Bigger Picture
As AI models grow more complex, the need for scalable, energy-intensive computing infrastructure is rising sharply. Projects like Stargate aim to address this challenge by coordinating long-term investments across regions.
India’s growing digital economy, large developer base, and expanding renewable energy capacity make it an attractive location for high-performance computing hubs. The TCS-OpenAI agreement positions both companies to benefit from this structural shift.
