OpenAI Eyes Massive Data Center Project in India to Boost AI Growth
OpenAI is in discussions with Indian partners to develop a large-scale data center in the country, Bloomberg News reported on Monday, citing sources close to the matter.
The proposed facility, with a minimum capacity of 1 gigawatt, would rank among India’s most powerful. It comes as global tech leaders such as Microsoft, Google, and Reliance Industries under Mukesh Ambani have already poured billions into the nation’s growing digital infrastructure.
While the exact location and launch timeline remain undecided, reports suggest CEO Sam Altman could announce the project during his upcoming visit to India this month. However, OpenAI has so far declined to comment.
The San Francisco-based company has been scaling its AI infrastructure worldwide, with significant investments in the U.S. and abroad. Its ambitious $500 billion Stargate initiative, backed by SoftBank and Oracle, is designed to deliver 4.5 gigawatts of computing power in the U.S.—a project praised by President Donald Trump.
OpenAI is also advancing its “OpenAI for Countries” program, a global initiative aligned with democratic values and viewed as a counter to China’s rapid AI growth. More than 30 nations have already expressed interest. The company has committed to data center projects in Norway (up to 520 megawatts) and Abu Dhabi (5 gigawatts, with 1 GW reserved for OpenAI’s use).
India’s potential inclusion comes at a sensitive time in U.S.-India relations, with Trump imposing 50% tariffs on Indian exports and criticizing the country’s continued oil imports from Russia.
For India, a hyperscale OpenAI data center could address data sovereignty concerns by keeping sensitive data local, while supporting custom AI applications for the domestic market. OpenAI has pledged to collaborate with the government’s $1.2 billion IndiaAI Mission, which focuses on language models and AI adoption.
India is already OpenAI’s second-largest user base globally. The company is expanding operations with a new office in New Delhi, hiring local talent, and rolling out a $5 subscription plan to make its tools more accessible.
