OpenAI is working to build a massive data center in India. According to the latest report from Bloomberg, the ChatGPT maker is in talks with local partners to set up a facility with at least 1 gigawatt of capacity. If this turns out to be true, then it would place it among the biggest in the country.
The project comes under OpenAI’s Stargate initiative, which is a multi-billion-dollar infrastructure program aimed at boosting AI computing power worldwide. While the details like the location and timeline are still under wraps. However, people familiar with the matter indicate that CEO Sam Altman could announce the plan during an upcoming visit to India.
Why Does India Matter to OpenAI?
India has become one of the most important markets for OpenAI, and is the second-largest by user base. As a result, the company has been launching offers specifically for Indian users. For example, the recently launched ChatGPT Go plan, which costs Rs 399 (around $4) per month, provides GPT-5 access and enhanced features at a budget-friendly price. Besides, the company has also announced to give half a million free ChatGPT licenses for students and teachers in collaboration with the government.
Furthermore, OpenAI is also funding research at IIT-Madras with a $500,000 grant, highlighting its push to integrate AI into classrooms and strengthen local talent pipelines. The company is also in the process of opening an office in India and expanding its local team.
A Strategic Move in Global AI Infrastructure
Building a large data center in India would allow OpenAI to address two important needs. This includes supporting its growing user base and aligning with the government’s $1.2 billion IndiaAI Mission, which seeks to build indigenous language models and AI capabilities. Plus, locally hosted infrastructure could also ease concerns over cross-border data transfers and ensure better performance for users in the region.
When we take a global look, OpenAI has already announced massive data center projects in Norway and Abu Dhabi, along with its record-scale facilities in the United States. The potential India buildout would add South Asia to that list. If the project moves forward, India would become not just one of OpenAI’s largest consumer bases but also a central hub in the company’s worldwide infrastructure network.
