TCS and OpenAI to Build 1GW AI Infrastructure in India

A Landmark Partnership for India's AI Ambitions

Tata Consultancy Services (TCS), a global leader in IT services, and OpenAI, the pioneering AI research and deployment company, have announced a multi-dimensional strategic partnership. This collaboration is set to build state-of-the-art AI infrastructure in India, develop industry-specific AI solutions, and launch large-scale skilling initiatives, marking a significant milestone in India's journey to become a global AI powerhouse.

The announcement, made on February 19, 2026, formalizes a deep collaboration that will leverage OpenAI's advanced AI models and TCS's extensive domain expertise and global reach. The partnership aims to accelerate AI adoption across enterprises, consumers, and social sectors, positioning India at the forefront of the generative AI revolution.

Building India's AI Backbone: The HyperVault Initiative

A cornerstone of this partnership is the commitment to develop massive AI compute infrastructure within India. TCS's recently established HyperVault unit will collaborate with OpenAI to build AI-ready data centers, starting with an initial capacity of 100 megawatts (MW) and with plans to scale up to 1 gigawatt (GW).

This infrastructure is a critical component of OpenAI's 'Stargate' initiative, a global project to build the next generation of AI supercomputers. The Indian leg of this project, in partnership with TCS, will ensure that OpenAI's most advanced models can run securely and efficiently within the country. This addresses key enterprise needs such as lower latency and compliance with data residency and security regulations, particularly for sensitive government and mission-critical workloads. OpenAI is expected to be the first anchor tenant for these new facilities.

Driving Enterprise Transformation

The collaboration extends beyond infrastructure. A key objective is to accelerate the adoption of AI within the Tata Group and for TCS's global clients. Thousands of employees across the Tata Group will gain access to Enterprise ChatGPT, a move designed to enhance productivity and foster a culture of innovation. Furthermore, TCS plans to integrate OpenAI's Codex models to improve its software engineering processes and outcomes.

Together, the two organizations will focus on creating 'Agentic AI' solutions. These are intelligent systems designed to autonomously handle complex business tasks. By combining OpenAI's powerful foundation models with TCS's deep contextual knowledge of industries like banking, retail, manufacturing, and healthcare, the partnership will deliver tailored solutions that address specific business challenges and drive tangible value.

Key Aspects of the TCS-OpenAI Collaboration

A Shared Vision from Leadership

The strategic importance of this alliance was highlighted by leaders from both organizations. N. Chandrasekaran, Chairman of Tata Sons, stated, "This deep collaboration between OpenAI and Tata Group marks a major milestone in India's vision to become a global leader in AI. We are pleased to partner with OpenAI to create state-of-the-art AI infrastructure in India. This is a unique opportunity for OpenAI and TCS to transform industries."

Sam Altman, CEO of OpenAI, echoed this sentiment, emphasizing India's strategic role. "India is already leading the way in AI adoption," he said. "Through OpenAI for India and our partnership with Tata Group, we're working together to build the infrastructure, skills, and local partnerships needed to build AI with India, for India, and in India, so that more people across the country can access and benefit from it."

Market Impact and Future Outlook

This partnership significantly strengthens TCS's ambition to become the world's largest AI-led technology services company. It provides the firm with a foundational platform to serve both global AI developers and domestic enterprises seeking advanced AI capabilities. The news was received positively, with TCS shares seeing a rise following the announcement, signaling investor confidence in the company's strategic pivot towards next-generation computing.

The collaboration also places India at the center of the global AI infrastructure race. As governments worldwide increasingly emphasize data sovereignty, having local, high-capacity AI data centers is a strategic advantage. This move complements the Indian government's efforts to attract AI-related investment and foster a robust domestic AI ecosystem.

Conclusion: Powering India's AI Era

The partnership between TCS and OpenAI is more than a business agreement; it represents a foundational step in building a comprehensive AI ecosystem in India. By combining world-class AI models with deep industry expertise and a commitment to building scalable infrastructure, the collaboration is poised to unlock new opportunities for businesses and empower a new generation of talent. As the initiatives roll out, this alliance will be a key driver of India's technological and economic growth in the AI era.