OpenAI in Talks to Establish Data Centre in India, Eyeing 2025 Completion

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 1. The proposed data centre is expected to store data not only from Indian users but also from smaller neighboring countries 2.

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 1. Despite the lack of a firm timeline, the company is aiming to complete the process by 2025 2.

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 2. 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 2.

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 2.

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 2.

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.