OpenAI, the based artificial intelligence company behind ChatGPT, is preparing for one of its most ambitious projects in India—a large-scale AI data centre with a planned capacity of at least 1 gigawatt. If realized, this facility would rank among the biggest AI-focused infrastructures in the country, positioning India as a critical hub in OpenAI’s global expansion strategy.
Early-Stage Discussions Underway
According to people familiar with the matter, OpenAI is currently in preliminary discussions with potential Indian partners to execute the project. While the precise location and timeline remain undecided, industry watchers expect significant updates when CEO Sam Altman visits India later this month. The company has so far declined to issue an official statement, but Altman’s visit is likely to shed light on the scale, scope, and strategic intent behind the move.
Why India? A Growing AI Market
India has rapidly become a crucial market for OpenAI, both for its large user base and future business potential. The company recently launched a $5 monthly ChatGPT plan tailored to Indian users, making the tool more affordable in a price-sensitive market. Additionally, OpenAI is setting up an office in New Delhi and hiring local talent to deepen its presence.
The decision also aligns with the Indian government’s IndiaAI Mission, a $1.2 billion initiative aimed at fostering domestic AI capabilities, including the development of homegrown large language models. Establishing a large data centre would strengthen India’s digital infrastructure and support this national mission.
Boosting Local Services and Data Security
If established, the proposed facility would significantly enhance AI services for Indian consumers and enterprises. A local data centre of this magnitude could speed up performance, reduce latency, and offer more customised services. Importantly, it would address growing concerns about sensitive data being transferred overseas. By keeping more data within the country, OpenAI would also be better positioned to build trust with Indian regulators and policymakers.
Part of a Global Infrastructure Push
The India project is one piece of OpenAI’s broader plan to construct a global network of massive AI data centres under its Stargate initiative. The company has already committed billions of dollars to build out infrastructure in the United States, in partnership with Oracle and SoftBank. Reports suggest more than 4.5 gigawatts of capacity has already been secured there, making these facilities among the largest in the world.
OpenAI is also anchoring similar projects in Norway and Abu Dhabi. The UAE initiative alone involves a planned 5-gigawatt facility, although it has sparked debate in Washington over the risks of transferring thousands of Nvidia chips to the Gulf. In contrast, India faces fewer geopolitical hurdles. The U.S. recently confirmed that export restrictions on advanced AI chips would not extend to India, removing a major obstacle for companies like OpenAI that rely heavily on such hardware.
Strategic and Geopolitical Importance
Beyond commercial motivations, the project also has a geopolitical dimension. OpenAI is working closely with the U.S. government on its “OpenAI for Countries” programme, which aims to build AI infrastructure in democratic nations while countering China’s expanding influence in the technology space. Over 30 countries have shown interest in this initiative, with India expected to play a pivotal role due to its growing digital economy, skilled workforce, and strategic importance as a U.S. ally.
What Lies Ahead
While many details about the proposed Indian data centre remain uncertain—including location, cost, and project partners—the scale of the plan signals OpenAI’s long-term commitment to India. For the company, India represents not just a massive user base but also an opportunity to embed itself in one of the world’s fastest-growing technology ecosystems.
As Sam Altman prepares to visit India, stakeholders across the tech industry, government, and investment community will be watching closely. His announcements could provide clarity on whether India is set to host one of the most powerful AI infrastructure projects outside the U.S.—a development that could reshape both India’s AI landscape and OpenAI’s global strategy.
