OpenAI plans to establish a large-scale data center in India, signaling a significant expansion of its Stargate AI infrastructure across Asia. The company is reportedly in talks with local partners to develop a data center in India with a capacity of at least 1 gigawatt, according to sources familiar with the discussions who spoke on condition of anonymity, as per Bloomberg.
If happened, the facility would rank among India’s largest, joining a growing list of data centers backed by global tech giants like Microsoft and Google, as well as investments from Asia’s wealthiest individuals.
Details on the location and timeline of OpenAI’s proposed data center are still unclear. Sources say CEO Sam Altman may unveil the project during his visit to India later this month, though those plans are not yet final.
OpenAI’s plans in India come amid escalating trade tensions between Washington, D.C., and New Delhi. The U.S. has slapped steep 50% tariffs on Indian products in response to trade restrictions and the country’s purchases of Russian oil, disrupting years of efforts to strengthen economic ties with the South Asian nation.
Based in San Francisco, OpenAI has been ramping up investment in AI infrastructure both domestically and abroad. Its flagship $500 billion Stargate initiative in the U.S. involves partnerships with SoftBank Group and Oracle to construct a massive network of data centers, a move praised by President Donald Trump. Recently, the company expanded its U.S. energy commitment by roughly 4.5 gigawatts enough to power millions of homes.
OpenAI is working alongside the U.S. government on its “OpenAI for Countries” initiative, which aims to develop AI infrastructure grounded in democratic principles. The company presents the project as a means for the U.S. to take the lead in global AI innovation while countering China’s advances in this critical technology arena.
The AI company aims to establish an initial ten partnerships worldwide and reports that over 30 countries have expressed interest in collaborating. OpenAI has already revealed plans to serve as the anchor tenant for a data center in Norway, expected to reach 520 megawatts, and a massive 5-gigawatt facility in Abu Dhabi, where OpenAI will utilize 1 gigawatt for its computing operations.
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The UAE facility, along with a series of other U.S. AI investments in the Persian Gulf, has sparked debate in Washington. Some officials view these projects as crucial for countering China’s AI push, while others express concern over potential national security risks tied to exporting large quantities of advanced Nvidia chips to regions with longstanding connections to Beijing.
A large-scale data center in India would allow OpenAI to offer localized AI chatbots while addressing concerns about cross-border data transfers. The company has pledged to collaborate with the federal government on its $1.2 billion IndiaAI Mission, aimed at developing both large and small language models for the country. As part of its broader expansion strategy, OpenAI is opening an office in New Delhi, growing its local team, and introducing a $5 monthly plan to attract more users in what is now its second-largest market globally.