OpenAI in Talks to Establish Data Centre in India, Eyeing 2025 Completion
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OpenAI In Talks To Set Up A Data Centre In India: Report
The location or capacity of the proposed data centre are not clear yet Amid booming AI adoption in the country, ChatGPT developer OpenAI is reportedly in initial discussions to set up data centre operations in India. The data centre will comprise data of Indian users as well as from smaller neighbouring countries, Business Standard reported, citing sources close to the matter. Currently, the US-based company is in discussions with some data centre operators, the report said. However, the location or capacity of the proposed data centre are not clear yet.
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OpenAI Plans to Establish Data Centre Operations in India
OpenAI has initiated discussions to set up data centre operations in India, Business Standard has reported. The centre is expected to store data of Indian users and some neighbouring countries. According to the report, "They are talking to some data centre operators right now, but these are very initial phases of their plan. It may take some time for them to get down to the details, such as the location and capacity." The company plans to complete the process in 2025 but has not set a timeline. Most of OpenAI's servers are based in data centres in Texas, US. The company relies on Microsoft's Azure Cloud services to serve users globally, including India. During his recent visit to India, OpenAI CEO Sam Altman said that India is the company's second-biggest market. OpenAI has seen a three-fold increase in users from the country over the past year. "I see people in India are building with AI at all levels of the stack - chips, models, you know, all of the incredible applications. So, I think India should be doing everything. I think India should be one of the leaders of the AI revolution," Altman said on February 5 during a fireside chat with IT minister Ashwini Vaishnaw. OpenAI is likely to collaborate with Microsoft to build a data centre in India. The latter recently announced a $3 billion investment in the country to expand Azure's infrastructure, during the Microsoft AI Tour in Bengaluru. Hyderabad has long been Microsoft's preferred city for building AI infrastructure and data centres in India. Microsoft Corporation (India) Private Limited recently purchased 25 acres of land for INR 181.25 crore in Mekaguda near Hyderabad. Last year, the company purchased 48 acres of land in Hyderabad for nearly INR 267 crore. The tech giant is expected to develop a new data centre on these plots.
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OpenAI is reportedly in initial discussions to set up data centre operations in India, aiming to store data from Indian users and neighboring countries. The move comes amid increasing AI adoption in the region and follows OpenAI CEO Sam Altman's recent visit to India.
OpenAI's Strategic Move into India
OpenAI, the company behind ChatGPT, is reportedly in initial discussions to establish data centre operations in India. This move comes as AI adoption in the country is booming, with India being OpenAI's second-biggest market
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. The proposed data centre is expected to store data not only from Indian users but also from smaller neighboring countries2
.Current Status and Timeline
While the discussions are in their early stages, OpenAI is reportedly in talks with several data centre operators. The specifics, such as the location and capacity of the proposed data centre, are yet to be determined
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. Despite the lack of a firm timeline, the company is aiming to complete the process by 20252
.OpenAI's Global Infrastructure
Currently, most of OpenAI's servers are located in data centres in Texas, USA. The company relies heavily on Microsoft's Azure Cloud services to cater to its global user base, including those in India
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. This new initiative suggests a shift towards a more localized data storage approach.India's Growing Importance in AI
During a recent visit to India, OpenAI CEO Sam Altman highlighted the country's significance in the AI landscape. Altman noted a three-fold increase in users from India over the past year and expressed his belief that India should be at the forefront of the AI revolution
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.Potential Collaboration with Microsoft
OpenAI is likely to collaborate with Microsoft for this data centre project in India. This aligns with Microsoft's recent announcement of a $3 billion investment to expand Azure's infrastructure in the country, made during the Microsoft AI Tour in Bengaluru
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.Related Stories
Microsoft's Existing Investments in India
Microsoft has shown a preference for Hyderabad as its hub for AI infrastructure and data centres in India. The company recently acquired 25 acres of land for INR 181.25 crore in Mekaguda near Hyderabad, following a previous purchase of 48 acres in the same city for nearly INR 267 crore last year. These land acquisitions are expected to be developed into new data centres
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.Implications for India's AI Ecosystem
This move by OpenAI could significantly boost India's AI ecosystem. It not only demonstrates the country's growing importance in the global AI landscape but also has the potential to improve service quality for local users. Furthermore, it aligns with India's data localization efforts and could pave the way for more AI companies to establish a stronger presence in the country.
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