OpenAI is reportedly scouting local partners to build a massive data center in India with at least 1-gigawatt capacity as part of its ambitious “Stargate” project – a global AI infrastructure initiative designed to power the next generation of artificial intelligence. The potential move signals a significant expansion for the AI leader and highlights India’s growing importance in the global AI landscape.
India’s Strategic Appeal for Gigawatt-Scale AI Data Center
Several factors make India an attractive option for OpenAI’s data center plans. India represents OpenAI’s second-largest user base globally after the United States, with user numbers increasing fourfold in the past year. The country offers a vast and growing pool of tech talent, crucial for the operation and maintenance of such a complex facility. Furthermore, OpenAI has formally registered as a legal entity in India and has begun building a local team, with plans to open its first office in India in New Delhi later this year. The company has also launched ChatGPT Go, a localized subscription plan priced at just ₹399 per month (compared to ₹1,999 for ChatGPT Plus), demonstrating its commitment to the Indian market. While the specific location remains undisclosed, the facility could become one of the largest data centers in India.
OpenAI’s Gigawatt Data Center Plans: Stargate’s Global Expansion
The Stargate project represents OpenAI’s $500 billion global infrastructure initiative, developed in partnership with SoftBank, Oracle, and backed by the UAE’s MGX. The project aims to deliver approximately 4.5 gigawatts of computing capacity in the United States alone, with international expansion being a key component. OpenAI has already committed to projects including a 520-megawatt facility in Norway and will utilize 1 gigawatt of a massive 5-gigawatt development in Abu Dhabi. Over 30 countries have expressed interest in participating in OpenAI’s “OpenAI for Countries” initiative, which aims to establish AI infrastructure aligned with democratic values as a counterweight to China’s growing AI dominance.
India’s Data Center Infrastructure and Strategic Partnerships
India’s existing data center infrastructure is rapidly expanding, with CRISIL projecting the country’s data center capacity to more than double to 2-2.3 GW by 2026-27. Major tech companies are investing heavily: Google announced a $6 billion investment for a 1-gigawatt data center in Andhra Pradesh, Microsoft committed an additional $3 billion for AI and cloud infrastructure, and Reliance Industries under Mukesh Ambani is building facilities with reportedly 3-gigawatt capacity. OpenAI’s facility would help address data sovereignty concerns by keeping information within India, aligning with the Digital Personal Data Protection Act, 2023. The company has already partnered with India’s Ministry of Electronics and IT under the $1.2 billion IndiaAI Mission, launching the “OpenAI Academy” to provide training for developers and government personnel.
Impact and Timeline: Sam Altman’s September Visit
CEO Sam Altman may announce specific details about the India data center during his planned visit to the country in September, though exact timeline and location remain undecided. The establishment of this gigawatt-scale facility would create significant employment opportunities and attract additional investment in the AI sector. However, the project faces geopolitical complexities, including recent 50% tariffs imposed by President Trump on Indian exports due to trade barriers and India’s continued oil purchases from Russia. Despite these tensions, OpenAI’s expansion aligns with the broader US strategy to strengthen AI partnerships with democratic nations and establish infrastructure presence outside China’s sphere of influence.
