India May Host One Of OpenAI’s Biggest Data Centers Yet In Global Stargate Drive: What We Know So Far
OpenAI has already unveiled partnerships for projects across Norway and Abu Dhabi, in addition to a record-breaking $500 billion Stargate project in the US.
OpenAI, the maker of ChatGPT, is exploring the possibility of setting up a massive data centre in India as part of its global Stargate expansion. According to a Bloomberg report citing people familiar with the matter, the company is in talks with local partners to establish a facility with at least 1-gigawatt capacity. If finalised, the project could rank among the largest data centres in the country. India has already attracted big-ticket investments from Microsoft, Google, and Reliance Industries in this space, making the region a competitive hub for global tech giants.
OpenAI has so far declined to comment publicly on the development.
Strategic Timing Amid Trade Tensions
The move comes at a politically sensitive time. US President Donald Trump has recently slapped a 50 per cent tariff on Indian exports, citing trade barriers and the country’s continued purchase of Russian oil. While the tariffs have complicated US-India ties, OpenAI’s interest in building infrastructure in India underlines the strategic value of the market. An Indian base could also help address local concerns about data privacy and reduce dependence on cross-border data transfers.
At the same time, Washington has tightened restrictions on exporting advanced Nvidia AI chips to the United Arab Emirates, while sparing India from similar curbs. The absence of such restrictions positions India as an attractive location for large-scale AI infrastructure development.
Global Expansion Beyond US Borders
OpenAI’s plans in India are part of a broader global spree to build AI-ready infrastructure. The company has already unveiled partnerships for projects across Norway and Abu Dhabi, in addition to a record-breaking $500 billion Stargate project in the US. That American initiative, backed by SoftBank and Oracle, has received praise from Trump himself. The San Francisco-based firm recently expanded its US capacity by 4.5 gigawatts, equivalent to the energy needs of millions of households.
In the Middle East, however, OpenAI’s 5-gigawatt Abu Dhabi facility has sparked debate in Washington. Some officials see it as a way to counter China’s AI ambitions, while others warn of national security risks due to the region’s ties with Beijing.
Deepening Indian Footprint
India is already OpenAI’s second-largest market by users, and the company is doubling down on its presence. It has announced plans to open an office in New Delhi, build a local team, and support the government’s $1.2 billion IndiaAI Mission to develop indigenous language models. To further expand its user base, OpenAI recently rolled out a $5 subscription plan tailored for Indian users.
A domestic data centre, industry watchers say, would not only strengthen OpenAI’s position in India but also cement the country’s role in the global AI race.
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