OpenAI is progressing toward establishing a major data centre in India with a capacity of at least 1 gigawatt (GW), a move expected to require a multi-billion-dollar investment, according to Bloomberg via Reuters.
The initiative forms part of OpenAI’s sprawling “Stargate” infrastructure project—backed by Microsoft, Oracle, and SoftBank—with an estimated total value of up to $500 billion. The company has already registered as a legal entity in India and is building a local team in preparation for the expansion.
OpenAI is actively seeking local partners for the project, although specific details regarding its location and construction timeline remain unannounced. Speculation is rising that CEO Sam Altman, who will visit India in September, might officially unveil the plan during his visit.
Why This Matters
| Aspect | Implication |
|---|---|
| Infrastructure Scale | A 1 GW data centre points to one of the largest single-site AI infrastructure projects in India, hinting at substantial investment and strategic depth. |
| Regulatory & Sovereignty Edge | Establishing local infrastructure helps OpenAI comply with Indian data sovereignty norms—especially in light of data localization and security expectations. |
| Enhanced Performance & Reach | Local infrastructure promises reduced latency and improved performance for Indian users—OpenAI’s second-largest user base. |
| Global AI Infrastructure Race | India becomes a key node in OpenAI’s global AI network, reinforcing the country’s strategic importance in hosting future AI infrastructure. |
