In a significant step towards strengthening AI infrastructure in India, Tata Consultancy Services (TCS) has acquired 2 large land parcels in Visakhapatnam and Pune, which are expected to support OpenAI’s first data centre facilities in the country, according to a report.
The Andhra Pradesh Government has allotted 200 acres of land to TCS in Anakapalli district near Visakhapatnam. The location is close to Google’s under-construction 1 GW hyperscale data centre, further strengthening the region’s position as a growing hub for AI infrastructure and cloud investments.
In a separate development, TCS has acquired an 88-acre land parcel in Bopkhel, Pune, from Hemisphere Properties for ₹640.5 crore. The public sector enterprise is responsible for monetising assets previously owned by Videsh Sanchar Nigam Limited (VSNL), now Tata Communications.
According to the report, both locations are expected to support OpenAI’s infrastructure expansion in India as the company increases its computing capacity to meet the rising demand for AI services. The Visakhapatnam project aligns with Andhra Pradesh’s efforts to attract hyperscale data centre investments, while the Pune site further expands TCS’ infrastructure presence in one of India’s largest technology hubs.
The report also noted that the development reflects the growing trend of global AI companies expanding data centre capacity in India to support increasing AI model training and inference workloads. India is also strengthening its position as an AI infrastructure destination through government-backed compute initiatives and rising private sector investments.
The land acquisitions build on the strategic partnership announced between The Tata Group and OpenAI in February. Under the agreement, OpenAI became the first customer of TCS’ HyperVault data centre business, with an initial commitment of 100 MW of AI-ready capacity, which could expand to 1 GW over time. The partnership is part of OpenAI’s Stargate initiative to build AI infrastructure outside the US while supporting data residency, security and low-latency AI services in India.
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