OpenAI is reportedly preparing to build a major new data center in India, a move that could mark one of the largest AI infrastructure projects in the country. According to people familiar with the matter, the company is in talks with potential local partners to establish a facility with at least 1-gigawatt capacity. If it materializes, this site will stand out in India’s rapidly growing data center market, where both global tech firms and homegrown giants are already ramping up investments.
Key takeaways
- OpenAI is planning a large-scale data center in India as part of its Stargate initiative.
- The facility is expected to have a minimum capacity of one gigawatt.
- India is OpenAI’s second-largest market, adding weight to the move.
- CEO Sam Altman could reveal more details during his visit to India.
- The project aims to localize AI services and manage data processing within the country.
This potential India data center ties directly into Project Stargate, an initiative OpenAI announced in January 2025. Stargate is envisioned as a massive private-sector push, with investments of up to 500 billion dollars over four years to create a global network of AI-optimized data centers. Key backers include SoftBank, Oracle, and Microsoft, all of whom share the goal of building the infrastructure needed to run and train increasingly complex AI models.
India’s data center industry is in the middle of a rapid buildout. Tech majors such as Google and Reliance Industries are already putting billions into facilities, spurred on by government support. Policies like the National Data Centre Policy of 2020, which grants infrastructure status and streamlines approvals, along with state-level incentives such as land subsidies and tax breaks, have made India an attractive destination.
Still, building a hyperscale data center of this size in India will not be without hurdles. Such facilities demand vast tracts of land, steady and abundant electricity, and a dependable water supply for cooling. The challenge is amplified by India’s rising temperatures, which make cooling infrastructure all the more critical. Even so, the country’s expanding internet user base and ongoing digital transformation make it a compelling market.
OpenAI has already signaled strong interest in India. The company recently set up an office in New Delhi and is growing its local team. With India now its second-largest market by user base, OpenAI has also introduced a lower-cost subscription plan designed specifically for Indian users. A domestic data center would not only boost reliability and speed but also address regulatory expectations around data storage and localization. OpenAI has additionally voiced support for the Indian government’s 1.2 billion dollar IndiaAI Mission, which is focused on developing both large and small language models tailored for local needs.
There is also a geopolitical layer to this move. OpenAI has been working with the United States government on the “OpenAI for Countries” program, an effort to expand AI infrastructure aligned with democratic values. Beyond India, the company has already announced data center projects in Norway and Abu Dhabi, suggesting that Stargate’s global footprint will continue to widen.
Related FAQs:
Q: What is a gigawatt-capacity data center?
A: A gigawatt-capacity data center is a massive facility that requires one billion watts of power to operate. This amount of power can support the computational needs of a large-scale AI system.
Q: What is OpenAI’s Project Stargate?
A: Project Stargate is a large-scale, multi-partner venture led by OpenAI. The project aims to build AI infrastructure globally, with a budget of up to $500 billion, to meet the huge computing demands of advanced AI models.
Q: How will an India data center benefit local users?
A: A data center in India would bring the AI models closer to local users. This can lead to faster response times, better performance for services like ChatGPT, and help with data security and compliance with local regulations.
