OpenAI in Advanced Talks with Tata Consultancy Services for Indian Stargate AI Data Center

OpenAI in Advanced Talks with Tata Consultancy Services for Indian Stargate AI Data Center

December 5, 2025

In a significant move to expand its global AI infrastructure footprint, OpenAI is reportedly in advanced discussions with Tata Consultancy Services (TCS) to develop a Stargate data center project in India. This potential partnership underscores the intensifying race among leading AI firms to secure the massive, specialized computing capacity required to train next-generation models, with India emerging as a key strategic market.

According to a report by The Economic Times of India, the talks between the AI research lab and the IT services giant include plans for the data center project as well as the co-development of agentic AI solutions for enterprise clients. These discussions follow earlier, reportedly stalled negotiations between OpenAI and Indian conglomerate Reliance Industries for a similar venture.

The collaboration would leverage TCS's deep domestic expertise and its recent major push into digital infrastructure. In October 2025, TCS CEO K Krithivasan announced the launch of HyperVault, a new data center venture planning to invest between $6 and $7 billion over five to seven years to build out large-scale capacity across India. This ambition was further bolstered in November by a major investment from global firm TPG into the 1-gigawatt venture.

For OpenAI, an Indian Stargate would be a pivotal node in its sprawling global network of AI supercomputing facilities. The company's ambitious build-out includes a project in the United Arab Emirates with a potential capacity of up to 5 gigawatts, a Norway-based development in partnership with Nscale and Aker planned to house approximately 100,000 GPUs, and smaller-scale Stargate projects in the United Kingdom. The company has also signed memorandums of understanding for potential data centers in South Korea and Argentina and is exploring capacity in Canada.

The potential deal signals a strategic pivot for TCS, which has stated its goal to become the world's largest AI-led technology services company. While its sister company, Tata Communications, previously operated data centers in India and Singapore, it sold majority stakes in those assets to STT GDC starting in 2017. A partnership with OpenAI would position TCS at the forefront of India's AI infrastructure boom, providing a foundational platform to serve both global AI developers and domestic enterprise clients seeking advanced AI capabilities.

Source: datacenterdynamics

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