OpenAI Plans Massive Data Center in India, Expanding Global AI Infrastructure

Despite whispers of a bubble, OpenAI is planning a gigawatt-scale data center in India

As the second-largest market for ChatGPT, OpenAI looks to secure local infrastructure and investment. OpenAI is scouting for partners to help it build a huge data center in India, according to Bloomberg. The data center will reportedly be on the gigawatt scale, which would make it one of the largest in the country. This comes at a time of increasing diplomatic tension between the U.S. and India over trade tariffs, but with OpenAI Sam Altman visiting India later this month, those close to the matter believe he may make the announcement official. OpenAI's immediate future has been repeatedly brought into question over the past month. After the disastrous launch of its next-generation language model, GPT-5, and a recent hiring freeze at Meta's AI division after months of heavy expenditure, many analysts started to question whether the AI bubble was easing closer to bursting. Had the $500 billion+ + rollout of AI infrastructure as part of OpenAI's Stargate plan finally run out of steam? It seems not, though, as OpenAI will have to invest billions more to build out this newly planned data center. Its Stargate project was mostly seen as a way to quickly scale up American AI data center capacity, but OpenAI has also been pushing an 'OpenAI for Countries' initiative. On the surface, it's to accelerate AI development and adoption in democratic countries that share U.S. values, but it's also a way to entrench American AI developments as the premier solution for countries that might otherwise consider alternative initiatives, such as those developed by China. As the world's largest democracy with close to 1.5 billion people, India is a prime candidate for such a scheme. OpenAI is said to be currently in talks with Indian officials and local companies in order to secure the land necessary to begin construction. It's also seeking regulatory approval and exploring local energy sources, as a one-gigawatt facility will require a substantial amount of power. Until those are secure, OpenAI won't be able to give too many details about the planned facility, even if and when an announcement is made. Indian expansion seems all but confirmed, though, even without any kind of announcement. Altman posted on Twitter/X earlier this month that ChatGPT had seen huge growth in India after the adoption of a more affordable $5-a-month subscription model. He also suggested OpenAI was planning further investment in the country. OpenAI has already inked deals with Norway for a 520-megawatt-scale data center and an unprecedented facility in Abu Dhabi, which could draw as much as five gigawatts when completed. Although those countries have their own particular demands and require bespoke political wrangling, India may prove a little trickier for OpenAI to navigate. While data center construction may have been planned for some time, the relationship between the U.S. and Indian governments has dissolved in recent weeks. President Trump instigated a 50% trade tariff with India over its continuing purchase of Russian oil products, despite global trade sanctions and efforts among many countries to starve Russian finances due to its aggression in Ukraine. India has since doubled down, promising to buy more oil and has made major public gestures of friendship with both Russia and China, the latter of which is positioned as a potential rival to the US for dominance in the AI space. India has also been caught skirting Russian sanctions before, with some firms accused of helping to funnel high-end GPUs to the country. Although these events don't directly interfere with OpenAI's plans, the current US administration has leveraged access to high-tech AI hardware such as Nvidia GPUs as a bludgeoning tool in trade negotiations, cutting off access as a stick, and suggesting the waiving of tariffs as a carrot. If India remains stalwart in its stance on US tariffs, it's possible that the US may respond with further restrictions on trade, which could impact important electronic components like semiconductors and GPUs for AI training and inference, which would be paramount for any future OpenAI data center plans. Even if OpenAI is able to navigate the murky waters of a U.S/India trade spat, though, it may face competition for AI services once the data center is up and running, and others may even be looking to get ahead of it. Indian billionaire Mukesh Ambani has announced that his Reliance Group is developing what would be the country's largest data center, set to come online with a total capacity of three gigawatts. This design would dwarf even OpenAI's efforts, and benefits significantly from Ambani's contacts and existing investments in India. The Reliance Group is invested in petrochemical and IT infrastructure projects in India already, though it will reportedly primarily use renewable energy for the new data center project, which is earmarked to come online sometime in 2027, according to Bloomberg. Regardless of the competition, though, India is OpenAI's second-largest market, with the potential to grow into its largest if ties between the country and company aren't frayed by political tension. It's already secured deals with the Indian federal government to build large and small language models for government use. Watch this space for the official announcement of the new data center project in the coming weeks.

OpenAI Plans India Data Center in Major Stargate Expansion

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. The ChatGPT-maker is currently scouting local partners to set up a data center with at least 1-gigawatt capacity in the world's most populous country, according to people familiar with the matter, who asked not to be named as the information is private. The site could be among the largest in India, where tech giants including Microsoft Corp. and Alphabet Inc.'s Google -- plus Asia's richest man -- have also invested in such facilities.

OpenAI plans India data center with at least 1 gigawatt capacity, Bloomberg News reports

Sept 1 (Reuters) - ChatGPT parent OpenAI is scouting local partners to set up a data center in India with at least 1 gigawatt capacity, Bloomberg News reported on Monday, citing unidentified sources. Reuters could not immediately verify the report. OpenAI did not immediately respond to a Reuters request for comment outside regular business hours. OpenAI, backed by Microsoft (MSFT.O), opens new tab, has formally registered as a legal entity in India and has begun building a local team. The company said in August it plans to open its first India office in New Delhi later this year, expanding its presence in its second-largest market by user base. The plan to build a large new data center could mark a major step forward in Asia for OpenAI's Stargate-branded artificial intelligence infrastructure push, Bloomberg News reported. The location and timeline of OpenAI's proposed India project remain uncertain, Bloomberg reported, adding that CEO Sam Altman may announce the facility during his visit to the country in September. U.S. President Donald Trump in January announced Stargate, a private sector investment of up to $500 billion for AI infrastructure, funded by SoftBank, OpenAI and Oracle (ORCL.N), opens new tab. Reporting by Ananya Palyekar in Bengaluru; Editing by Mrigank Dhaniwala Our Standards: The Thomson Reuters Trust Principles., opens new tab

OpenAI is going big in India -- here's everything the ChatGPT developer is up to

Open AI CEO Sam Altman speaks at the annual Snowflake Summit in San Francisco, California on June 02, 2025. OpenAI is rapidly expanding its presence in India -- one of the key markets for its flagship ChatGPT product. India is an appealing destination for U.S. tech giants, with companies ranging from Google to Meta betting on its huge -- and young -- population over recent years. OpenAI CEO Sam Altman visited the country in February this year and met with the country's IT Minister Ashwini Vaishnaw to discuss collaboration. During the visit, Altman said India was OpenAI's second-largest market by number of users. He has subsequently said that AI adoption in India is "amazing to watch." "We love to see the explosion of creativity--india is outpacing the world," he said on X earlier this year. India is one of ChatGPT's fastest-growing markets globally, Nick Patience, practice lead for AI at tech research and analysis firm Futurum Group, told CNBC. "OpenAI's India focus is a strategic move to gain a competitive edge," he added. Here's a rundown of how OpenAI is expanding in India.

Bloomberg: OpenAI plans Indian data centre in Stargate push

OpenAI announced its first Indian office in New Delhi, set to be opened later this year. OpenAI is planning for a new, massive data centre in India, in what could be a "major step forward" for the company's Stargate project expansion in Asia, Bloomberg reported today (1 September). Stargate is a $500bn private sector funding meant for OpenAI's artificial intelligence infrastructure over the next four years. The project's initial equity funders include OpenAI, Oracle, MGX and SoftBank, with Microsoft, Nvidia and Arm among the key technology partners. Bloomberg cites unnamed sources who told the publication that the ChatGPT-maker is scouting local partners to set up a data centre with at least 1 gigawatt (GW) capacity. The exact location and timeline of OpenAI's potential project remains unclear. CEO Sam Altman could announce the facility during his visit to India later this month, the report added. The site could be one of the largest data centres in India, where Google is reportedly already investing $6bn for a 1 GW data centre facility, and the Indian billionaire Mukesh Ambani is building what is reportedly the world's biggest data centre by capacity. Earlier this year, OpenAI launched 'OpenAI for Countries', a new initiative within Stargate which partners with nations worldwide to help build in-country data centre capacity. The company is coordinating with the US government for this new initiative. It is pursuing 10 initial projects under the programme. Bloomberg's report emerges just after OpenAI announced its first India-based office in New Delhi set to be opened later this year. The company also launched a new ChatGPT Go plan in the country for less than $5 a month - it's cheapest offer yet - which allows users to generate more images and interact with the chatbot more frequently than the free version. The plan extends to OpenAI's latest GPT-5 model. The India-only offer comes as OpenAI targets the world's most populated country. In an X post last month, Altman said that ChatGPT users in the country grew four-fold in the past year. "We are excited to invest much more in India!", he added. India is OpenAI's second-largest market by user-base. The company has also committed to work with the Indian government's $1.24bn IndiaAI Mission, which aims to leverage the tech for economic growth. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Report: OpenAI plans to build 1GW+ data center in India - SiliconANGLE

OpenAI is expected to build a data center in India that will use more than one gigawatt of power. The ChatGPT developer is searching for local companies with which it can partner on the project, Bloomberg reported today. OpenAI will need the help of utilities and construction firms to launch the data center. Additionally, it may seek to ink go-to-market partnerships that could broaden ChatGPT adoption. One gigawatt is enough to power hundreds of thousands of homes. Nvidia Corp.'s DGX GB200 appliance, which contains 72 of its Blackwell B200 graphics processing units, uses about 120 kilowatts. That means OpenAI's data center in India will be capable of hosting at least 59,000 B200 chips. It's possible OpenAI will opt for Nvidia's newer Blackwell Ultra chip, which recently started shipping to customers. The Blackwell Ultra is faster than the B200 and may consequently use more power. GPUs account for only a fraction of the chips in an AI data center. Besides B200 accelerators, each DGX GB200 appliance includes 36 central processing units and nine switches powered by custom silicon. The DGX GB300, an upgraded version of the appliance based on the Blackwell Ultra, has a similar configuration. It's unclear whether the facility OpenAI will reportedly build in India is part of its OpenAI for Countries initiative. The program, which launched earlier this year, will see the AI provider build data centers around the world to support international users. OpenAI has so far inked deals to build infrastructure in the United Arab Emirates and Norway. The OpenAI for Countries program also extends beyond data centers. Notably, the language model provider is offering to help participating governments launch localized versions of ChatGPT and foster local AI startups. OpenAI has indicated that it may invest in some of those startups. In February, OpenAI Chief Executive Officer Sam Altman reportedly met with Indian officials to discuss the development of "a low-cost AI ecosystem". More recently, the company launched a new ChatGPT plan that is only available in India. ChatGPT Go, as the subscription is called, costs about $4.5 per month and allows users to send ten times more prompts to ChatGPT than the free tier. According to Reuters, Altman will visit India next month. OpenAI recently announced plans to open an office in New Delhi by the end of the year. Additionally, it intends to distribute about half a million ChatGPT licenses to local educators and students. Establishing a data center in India would enable OpenAI to provide lower latency for local users. Additionally, the facility may put it in a better position to compete for enterprise customers. Some organizations must store data locally to comply with cybersecurity and privacy regulations. The report of OpenAI's infrastructure push in India comes weeks after it partnered with Oracle Corp. to build 4.5 gigawatts of stateside data center capacity. Within the next four years, the ChatGPT developer plans to commission at least 5.5 gigawatts of additional capacity in the U.S. The initiative is expected to cost $500 billion.

OpenAI to Establish Data Centre in India to Expand Stargate AI Infra

CEO Sam Altman might reveal details about the facility during his India visit scheduled this month. OpenAI is looking to establish a large capacity data centre in India, which could be a significant advancement for its Stargate-branded artificial intelligence infrastructure in Asia, Bloomberg reported. The creator of ChatGPT is currently seeking local partners to develop a data centre with a minimum capacity of 1 gigawatt in the world's most populous country, according to sources familiar with the situation who requested anonymity due to the confidential nature of the information. This facility could potentially rank among the largest in India, where major tech companies like Microsoft and Alphabet's Google, as well as Mukesh Ambani, have also made investments in data centre infrastructure. The specific location and timeline for OpenAI's proposed project are still un

OpenAI Could Soon Build This Massive AI Infrastructure in India

OpenAI has also confirmed opening its first office in India later in 2025 OpenAI is reportedly planning to build its first data centre in India. As per the report, the San Francisco-based tech giant is currently in the process of selecting a local partner for the initiative. The data centre, which will power the company's India-focused artificial intelligence (AI) servers and could be used to host local businesses, will likely be part of the OpenAI for Countries initiative, aimed at developing AI capacity in multiple countries. Notably, the initiative is part of Project Stargate, which is focused on developing AI infrastructure in the US. OpenAI to Reportedly Build Data Centre in India According to a Bloomberg report, OpenAI wants to set up a data centre with at least 1GW capacity. Citing unnamed people familiar with the matter, the report claimed that a formal announcement for this could be made when the company CEO, Sam Altman, visits India later this month. The reported 1GW data centre will mark a first-of-its-kind project by the ChatGPT maker in South Asia. No additional details about the data centre, including its location, timeline, and local partners that will support the project, were provided. It is said that the AI firm is currently scouting an ideal partner for this venture. Interestingly, this report comes just days after Reliance Industries Limited Chairman, Mukesh Ambani, announced a partnership with Google CEO Sundar Pichai, which includes establishing the Jamnagar Cloud region, a data centre exclusively for the Reliance group. Notably, OpenAI is heavily investing in India. The company has already announced opening its first office in the country by the end of the year, and has begun hiring staff for its India division. Two weeks ago, the AI firm also released an India-exclusive subscription tier dubbed ChatGPT Go, which offers higher rate limits at the monthly cost of Rs. 350. Earlier this year, the company announced Project Stargate to develop AI infrastructure and build capacity in the US. Under this, OpenAI has committed to building data centres with a total capacity of 4.5 GW. Later in May, the ChatGPT-maker unveiled its OpenAI for Countries initiative, which is part of the Stargate project. The initiative has the same focus as Stargate, but for other countries. Under this, OpenAI has already committed to building capacity for Norway and the UAE.

OpenAI To Set Up a 1GW Data Centre in India Under Stargate

OpenAI wants to establish a new data centre in India with at least one gigawatt capacity as part of the $500 billion Stargate project, according to a Bloomberg report. The Sam Altman-led company is currently looking for local partners and is in talks with Indian officials in order to secure land, regulatory approvals and energy resources. The details about the exact timeline and location of this data centre still remain under wraps; however, OpenAI's CEO, Sam Altman, could make an announcement when he visits India later this month. For context, Altman took to X (formerly Twitter) on August 22 to say: "We (OpenAI) are opening our first office in India later this year! and I'm looking forward to visiting next month. "AI adoption in India has been amazing to watch-ChatGPT users grew 4x in the past year-and we are excited to invest much more in India!" he added. Notably, the California-based AI company has embarked on a project to build a data centre in India amid US President Donald Trump's 50% tariffs taking effect on August 27 on India. Trump's apparent rationale for these tariffs is that India imposes enormous tariffs on American-origin goods and services and buys Russian oil, which finances Russia's war against Ukraine. Earlier this year, Trump had hailed the Stargate as the "largest AI infrastructure project in history" as OpenAI and other AI companies announced a $500 billion AI infrastructure investment in the US. Now, OpenAI is expanding it to set up a data centre in India. Thus far, OpenAI has announced plans for a Norway-based project that can reach 520 megawatts in scale, as well as a five-gigawatt facility in the United Arab Emirates (UAE). Notably, the Altman-led company will only use one gigawatt of computing power in the UAE. The ChatGPT-maker is also coordinating with the US Government for the 'OpenAI for Countries' global initiative, which aims to build AI infrastructure with 'democratic values'. The Altman-led company has pitched this effort as a pathway for the US to lead AI development globally and counter China's emerging threat in this technological battleground. India has become the country of choice for the latest Stargate project, given its robust technology ecosystem, skilled workforce, and renewable energy capacity. Furthermore, India has a lot of hyper-scale data centres that tech giants such as Amazon, Google and Microsoft operate. Stargate facilities reportedly include tens of thousands of GPUs and custom chips, which allow OpenAI to train and deploy powerful AI models. For context, these GPUs and custom chips are expected to support applications ranging from autonomous systems and scientific research to enterprise automation and national security. Furthermore, an industrial-scale data centre in India would help the AI company provide customised AI chatbots to Indian users and also assuage fears surrounding data transfers out of the country. However, recently, OpenAI has come under scrutiny for its ChatGPT AI model, giving sycophantic replies to users. In addition, certain use cases demonstrated that the model showed support for dangerous decisions, leading to concerns around how the chatbot could create a false sense of trust and intimacy. Notably, the Altman-led company rolled back the updates, causing this behaviour after user complaints grew. Earlier in August, OpenAI acknowledged that safeguards built into its AI system might not work when users engage in long conversations with the ChatGPT AI model. Pertinently, the AI company's statement came after a wrongful-death lawsuit in the US, in which the parents of a 16-year-old alleged negligence against OpenAI. The parents claim that ChatGPT provided detailed instructions for self-harm, validated their son's suicidal thoughts, discouraged him from seeking help, and ultimately enabled his death by suicide in April this year.

OpenAI plans India data center with at least 1 gigawatt capacity, Bloomberg News reports

(Reuters) -ChatGPT parent OpenAI is scouting local partners to set up a data center in India with at least 1 gigawatt capacity, Bloomberg News reported on Monday, citing unidentified sources. Reuters could not immediately verify the report. OpenAI did not immediately respond to a Reuters request for comment outside regular business hours. OpenAI, backed by Microsoft, has formally registered as a legal entity in India and has begun building a local team. The company said in August it plans to open its first India office in New Delhi later this year, expanding its presence in its second-largest market by user base. The plan to build a large new data center could mark a major step forward in Asia for OpenAI's Stargate-branded artificial intelligence infrastructure push, Bloomberg News reported. The location and timeline of OpenAI's proposed India project remain uncertain, Bloomberg reported, adding that CEO Sam Altman may announce the facility during his visit to the country in September. U.S. President Donald Trump in January announced Stargate, a private sector investment of up to $500 billion for AI infrastructure, funded by SoftBank, OpenAI and Oracle. (Reporting by Ananya Palyekar in Bengaluru; Editing by Mrigank Dhaniwala)