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 and Google — plus Asia’s richest man — have also invested in such facilities.

The exact location and timeline of OpenAI’s potential project remain unclear. Chief Executive Officer Sam Altman could announce the facility when he visits the South Asian country this month, said the people, though those plans remain in flux. OpenAI representatives declined to comment.

The San Francisco, California-headquartered company has embarked on an AI infrastructure spending spree on American soil and overseas. For its signature $500 billion Stargate project in the US, OpenAI has partnered with SoftBank Group and Oracle to build some 4.5 gigawatts of capacity, an unprecedented buildout lauded by President Donald Trump.

The ChatGPT-maker is also coordinating with the US government on OpenAI for Countries, a global initiative that seeks to build AI infrastructure with democratic values. OpenAI has pitched the effort as a way for the US to lead global AI development and counter China’s efforts in a crucial technological battleground.

The company is seeking an initial ten partnerships across regions — and has said that more than 30 countries have reached out with interest. So far, OpenAI has announced plans to be the anchor tenant for a Norway project that could reach 520 megawatts in scale, as well as a staggering 5-gigawatt facility in Abu Dhabi — of which the company will use 1-gigawatt of computing power.

OpenAI’s ambitions in India coincide with rising tensions over trade between Washington and New Delhi. Trump has imposed a crushing 50% tariff on Indian goods because of its trade barriers and to punish the country for buying Russian oil, upending a decades-long push by Washington to forge closer ties with New Delhi.

An industrial-scale data center in India will help OpenAI provide customized AI chatbots to users, and allay fears of data transfers out of the country. The company has committed to work with the federal government in its $1.2 billion IndiaAI Mission that seeks to build large and small language models for the country.

OpenAI is currently on an expansion drive in India, its second-largest market in the world by users. It’s set to open an office in capital New Delhi and is hiring to expand its local team. It has also launched a $5 monthly plan for the country to woo more users.