OpenAI is reportedly planning a huge AI data center in India, marking a major step in its global infrastructure ambitions.
Quick Summary – TLDR:
- OpenAI is planning a 1-gigawatt data center in India as part of its $500 billion Stargate initiative.
- CEO Sam Altman may announce the project during his visit to India in September 2025.
- India is OpenAI’s second-largest market, with major growth in ChatGPT usage and local partnerships.
- The move could support sovereign AI infrastructure and align with India’s data residency rules.
What Happened?
OpenAI, the creator of ChatGPT and one of the most prominent names in artificial intelligence, is preparing to launch a massive gigawatt-scale data center in India. This is part of its broader Stargate initiative, a $500 billion global AI infrastructure project backed by Microsoft, Oracle, and SoftBank. The announcement could come during CEO Sam Altman’s visit to India this September.
OpenAI is seeking to build a massive new data center in India that could mark a major step forward in Asia for its Stargate-branded artificial intelligence infrastructure push https://t.co/yEKHH2296y
— Bloomberg (@business) September 1, 2025
India’s Role in OpenAI’s Stargate Plans
India is rapidly becoming central to OpenAI’s global strategy. As part of the Stargate project, OpenAI aims to build over 4.5 gigawatts of AI-focused infrastructure worldwide. The upcoming India facility would be one of the largest data centers in the country, if not the entire region.
- The India data center is expected to have at least 1 gigawatt capacity.
- It will support training large AI models and delivering faster, localized AI services.
- The data center aligns with India’s push for data sovereignty and regulatory compliance.
The facility would not only serve performance needs by reducing latency but also help meet local data residency laws, ensuring sensitive data remains within national borders.
Timing and Partnerships Still in Progress
While the exact location and construction timeline are still under wraps, OpenAI is actively in discussions with Indian partners to bring the project to life. Given the scale, the project may involve major local tech players or infrastructure firms. A formal announcement is expected soon, possibly during Altman’s India visit this month.
Altman’s Growing Interest in India
Sam Altman has made his enthusiasm for India clear. In a recent post on X (formerly Twitter), he wrote,
India has emerged as OpenAI’s second-largest market globally, both in terms of user base and overall engagement. The company recently introduced the ChatGPT Go plan at ₹399 per month, tailored specifically for Indian users.
Local Hiring and Partnerships
OpenAI has already:
- Registered as a legal entity in India.
- Started building a local team with active job listings.
- Announced plans to open its first office in New Delhi later this year.
- Partnered with IndianAI Mission to support domestic AI model development.
- Collaborated with the Ministry of Education to distribute 500,000 free ChatGPT licenses to students and educators.
Facing Competition and Legal Hurdles
Despite strong momentum, OpenAI is facing stiff competition from Google’s Gemini and Perplexity, both of which have launched aggressive offers for Indian users. Perplexity even partnered with Airtel to provide premium access to over 300 million users, while Google offers free AI subscriptions to students.
OpenAI is also embroiled in legal challenges from global publishers, including Penguin Random House and Cambridge University Press, who claim their content was used without consent to train AI models.
SQ Magazine Takeaway
Honestly, this is a bold move by OpenAI, and it shows how serious they are about making India a core part of their AI empire. As someone watching this space closely, I’m thrilled to see a global tech leader invest at such a large scale in India. This isn’t just about servers or subscriptions. It’s about building the next wave of AI innovation within the country. If done right, it could open up countless opportunities for local developers, startups, and researchers.
