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OpenAI Partners with Tata Group for Massive AI Infrastructure Expansion in India

Source tech crunch

New Delhi: In a major boost to India’s artificial intelligence ecosystem, OpenAI has partnered with Tata Group to secure 100 megawatts (MW) of data-center capacity, with long-term plans to scale the footprint up to 1 gigawatt (GW). The move signals growing global confidence in India as a strategic hub for large-scale AI computing infrastructure.

According to industry sources, the collaboration will involve infrastructure support from Tata Communications and Tata Power, ensuring both high-speed connectivity and reliable energy supply — two critical requirements for training and running advanced AI models.

The initial 100MW capacity is expected to support high-performance computing workloads, including model training, inference services, and enterprise AI deployments. As demand for generative AI applications continues to surge across sectors such as finance, healthcare, and manufacturing, OpenAI plans to gradually expand capacity toward the 1GW mark, potentially making it one of the largest AI compute deployments in Asia.

Experts say India’s expanding digital economy, improving semiconductor ecosystem, and growing renewable-energy investments make it an attractive destination for hyperscale AI infrastructure. The project is also expected to generate skilled employment and strengthen domestic cloud and AI services.

For Tata Group, the partnership reinforces its ambitions to become a major player in digital infrastructure and next-generation computing. For OpenAI, the agreement provides geographical diversification of compute resources while improving service latency for users across South Asia.

The development comes amid intensifying global competition to secure computing power, now considered as crucial as energy in the AI era. With the planned scale-up to 1GW, the project could significantly accelerate India’s role in the global artificial intelligence supply chain.

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