Artificial intelligence firm Anthropic is considering establishing data residency in India for enterprise clients, a move that would ensure client data is stored within Indian data centers. This development aligns with the company's broader expansion plans in the region, including the opening of an office in Bengaluru in early 2026.

Anthropic's interest in India stems from the country's rapidly growing AI ecosystem and the increasing demand for its Claude AI model. India is currently the second-largest market for Claude, trailing only the United States, with a significant portion of its usage dedicated to technical and programming tasks.

CEO Dario Amodei recently met with Indian Prime Minister Narendra Modi to discuss Anthropic's expansion plans and explore potential collaborations in key sectors like education, healthcare, and agriculture. Amodei emphasized the alignment between India's challenges and Anthropic's mission, particularly in deploying AI across diverse languages and building frameworks for responsible governance.

The Bengaluru office will serve as Anthropic's second location in the Asia-Pacific region, following Tokyo. The company aims to leverage the local talent pool to scale its engineering, commercial, and partner activities. This includes enhancing Claude's capabilities in Indic languages, such as Hindi, Bengali, Marathi, Telugu, Tamil, Punjabi, Gujarati, Kannada, Malayalam, and Urdu, to broaden AI accessibility and support public sector adoption.

Anthropic's expansion is not solely focused on tapping into the Indian market; the company also intends to contribute to the country's AI ecosystem. The Bengaluru office will support local startups and emerging technology companies, fostering innovation and creating jobs in AI-related sectors.

The company is also forging strategic partnerships to deepen its enterprise push in India. Anthropic has announced a collaboration with IBM to integrate Claude into IBM's software portfolio, starting with an AI-first integrated development environment (IDE). It is also working with Deloitte to scale consumer and enterprise deployments.

The move to potentially establish data residency in India reflects a growing trend among global tech companies to comply with local data protection regulations and address concerns about data privacy and security. By storing data within India's borders, Anthropic can assure its enterprise clients that their data is subject to Indian laws and regulations.

Anthropic's commitment to India is further demonstrated by its plans to triple its international workforce and expand its applied AI team fivefold. The company recognizes the importance of a local presence to effectively serve the Indian market and contribute to its AI ecosystem. As Paul Smith, Anthropic's Chief Commercial Officer, stated, Indian enterprises and startups are seeking AI models they can trust, combining advanced performance with the safety and reliability required for large-scale business operations.