Tata Consultancy Services’ AI data centre subsidiary has partnered with ChatGPT parent OpenAI to build AI infrastructure with 100 MW capacity

The companies said this infrastructure will support next-generation AI workloads and strengthen India’s position as an AI hub

The move builds on TCS’ recent decision to spin up HyperVault as the exclusive vehicle for its AI and sovereign data centre strategy

Tata Consultancy Services’ AI data centre subsidiary has partnered with ChatGPT parent OpenAI to build AI infrastructure with 100 MW capacity, with the option to scale it up to 1 GW over time.

The companies said this infrastructure will support next-generation AI workloads and strengthen India’s position as an AI hub.

The move builds on TCS’ recent decision to spin up HyperVault as the exclusive vehicle for its AI and sovereign data centre strategy. The unit will offer liquid-cooled, high-density data centres aimed at hyperscalers, AI companies, large enterprises and government clients.

In November last year, TCS roped in global investment firm TPG as a major investor in HyperVault. TCS and TPG Terabyte Bidco plan to invest up to ₹18,000 Cr (around $2 Bn) in a mix of equity and debt over the next few years to build AI-focused data centres across India.

TCS will retain a 51% stake in HyperVault, while TPG is expected to own between 27.5% and 49%, depending on investment tranches. TPG is investing via TPG Rise Climate and its Global South Initiative, along with its Asia real estate platform. Together, they are targeting up to 1.2 GW of data centre capacity over five to seven years.

The OpenAI partnership is likely part of these plans to host AI workloads locally, amid rising computing demand.

For OpenAI, the partnership is a part of its ‘Stargate’ project. Led by SoftBank, OpenAI, Oracle and MGX, The Stargate Project aims to invest $500 Bn to build AI infrastructure.

Earlier, it was reported that the ChatGPT parent was in talks with Reliance Industries and other domestic data centre companies to bring Stargate to India.

OpenAI Strengthens India Presence

The Tata Group also announced a strategic partnership with OpenAI to expand the use of AI across its businesses and build AI infrastructure in India.

As part of the deal, several thousand employees across the Tata Group will get access to Enterprise ChatGPT. TCS will also use OpenAI’s Codex tools to improve its software development work.

The partnership will focus on building industry-specific AI solutions for enterprises in India and overseas. TCS and OpenAI will jointly take these offerings to market, helping businesses deploy and scale AI tools suited to their needs.

Beyond infrastructure and enterprise offerings, the partnership also has a skilling component. The OpenAI Foundation and TCS will work together to provide AI training and resources to young people in India. They aim to develop toolkits for non-profits and support at least one million youth with AI skills, as part of a wider effort to widen access to AI tools and capabilities.

Amid concerns over the impact of AI adoption on their businesses and the surge in compute demand globally because of increasing use of AI, Indian IT majors are now moving closer to the infrastructure layer.

Besides TCS, Infosys has also expanded its cloud and infrastructure footprint through acquisitions and partnerships, including a recent joint venture with Telstra to strengthen its cloud engineering and AI platform capabilities.

Meanwhile, SaaS major Zoho, which already operates its own data centres in Mumbai, Delhi and Chennai, has announced plans to set up a new facility in Odisha under the state’s data centre policy as part of its push to localise data storage.