OpenAI plans massive India data center to boost AI infrastructure - report

Published 01/09/2025, 07:00

Investing.com -- OpenAI is in talks with potential Indian partners to establish a large-scale data center in the country, Bloomberg News reported on Monday citing sources familiar with the matter. 

The proposed facility, expected to have a minimum capacity of 1 gigawatt, would be among the most powerful in India, where global tech leaders such as Microsoft, Google, and Reliance Industries’ Mukesh Ambani have already made significant investments.

The precise location and launch timeline remain undecided. CEO Sam Altman may unveil the project during his upcoming visit to India this month, though the announcement is not yet finalized. OpenAI has so far declined to comment, the report said.

The San Francisco-based company has been investing heavily in AI infrastructure both in the United States and abroad.

Its $500 billion Stargate initiative in the U.S., developed with support from SoftBank and Oracle, aims to deliver roughly 4.5 gigawatts of computing capacity, a project publicly praised by President Donald Trump.

OpenAI is also working closely with Washington on its “OpenAI for Countries” program, a global effort designed to expand AI capacity in alignment with democratic values. 

The initiative, positioned as a counterweight to China’s advances in the field, has attracted interest from more than 30 nations, the report added. 

So far, the company has committed to anchoring a data center project in Norway that could scale to 520 megawatts, along with a massive 5-gigawatt buildout in Abu Dhabi, where it will secure 1 gigawatt for its own use.

India’s potential inclusion in this network comes at a delicate moment in its relationship with Washington. 

President Trump has recently introduced steep 50% tariffs on Indian exports, citing trade barriers and the country’s continued oil purchases from Russia, a policy shift that has complicated decades of efforts to strengthen U.S.-India ties.

For OpenAI, a hyperscale data center in India could ease concerns around data sovereignty by keeping information within the country while powering custom AI tools tailored for local users. 

The company has pledged to coordinate with the Indian government’s $1.2 billion IndiaAI Mission, which seeks to advance domestic language models and AI applications.

India represents OpenAI’s second-largest user base worldwide. The company is expanding its presence there by opening an office in New Delhi, actively hiring local staff, and rolling out a low-cost $5 subscription plan to broaden access to its services.

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