OpenAI is preparing to establish a major artificial intelligence data centre in India with a capacity of at least 1 gigawatt. The move signals a deeper push into India, which is currently its second-largest market by user base. The company has already registered a legal entity in the country and begun setting up a local team.
This facility, still in early planning stages, could become one of OpenAI’s largest infrastructure investments outside the United States. Reports indicate that CEO Sam Altman may announce further details during his expected visit to India in September 2025. The planned data centre will form part of the Stargate initiative—a global project focused on building next-generation AI infrastructure.
Stargate project accelerates with India investment
The Stargate initiative, unveiled earlier this year, represents a private sector commitment of up to $500 billion. The investment is supported by Microsoft, Oracle, and SoftBank. The aim is to develop hyperscale AI infrastructure to support compute-heavy operations like large model training and deployment.
Bringing this project to India aligns with both OpenAI’s scaling plans and the Indian government’s digital ambitions. Local hosting of AI services will help reduce latency, enhance compliance, and bring advanced capabilities closer to enterprise and public sector users.
Strengthening presence through local partnerships
While the timeline and exact location for the data centre are yet to be confirmed, OpenAI is reportedly in discussions with Indian data infrastructure firms and cloud providers. This mirrors similar moves by other global technology companies seeking to expand their compute capacity in Asia.
OpenAI has also announced its first Indian office will open later this year in New Delhi. The facility will support ongoing partnerships, talent hiring, and deployment efforts across key sectors. The company’s expansion strategy suggests a long-term commitment to working with Indian stakeholders, particularly in areas like responsible AI development, skilling, and application deployment.
This data centre could help enable a new wave of localized innovation, supporting industries such as healthcare, education, and agriculture. As AI adoption rises across the Indian enterprise landscape, OpenAI’s infrastructure investment could place the country at the centre of global AI evolution.
(Reported by Bloomberg News)
