OpenAI and Tata Consultancy Services (TCS) are reportedly close to finalizing a major collaboration that could reshape India’s AI ecosystem. According to a report by The Economic Times, the partnership would establish India’s chapter of OpenAI’s global “Stargate” initiative, marking a significant milestone in the country’s emerging AI infrastructure ambitions.
As part of the agreement, OpenAI is expected to lease 500 MW of data centre capacity from HyperVault, TCS’s newly formed data centre division. This infrastructure would be used to train and run advanced AI models, while also supporting large-scale enterprise adoption across industries including BFSI, retail, manufacturing and consumer tech.
OpenAI will likely become the first anchor client at HyperVault’s upcoming facilities, which are planned to cater to hyperscalers, enterprise customers, sovereign cloud operators and government entities. The move aligns with rising global demand for data localisation, prompting OpenAI to offer regional data residency options in key Asian markets such as India, Japan, Singapore and South Korea.
The collaboration also involves co-developing agentic AI solutions for enterprises, supporting TCS’s strategy to evolve into an AI-driven services organisation. Senior TCS leaders are currently in the United States to finalise structural and commercial terms, with an official announcement expected by the end of the year.
Meanwhile, India’s AI landscape continues to accelerate. A Nasscom–BCG report predicts the sector will grow 25–35% annually, reaching $17–22 billion by 2027. With tech giants like Google and Reliance also forming AI alliances, the proposed OpenAI–TCS partnership positions India as a rising global AI hub.
