OpenAI, the creator of ChatGPT and a major player in the global artificial intelligence industry, is reportedly planning to build a large-scale data center in India with a capacity of at least 1 gigawatt. According to Bloomberg News, the company is scouting local partners to establish the facility as part of its aggressive expansion strategy in Asia. While the report is yet to be independently verified, the move signals India’s rising importance in the global AI infrastructure race.
The AI giant, backed by Microsoft, has already registered as a legal entity in India and is actively building a local team. In August, OpenAI confirmed its plan to open its first India office in New Delhi later this year, underscoring the country’s position as its second-largest market by user base. A large-scale data center would further solidify its presence and support the growing demand for AI services across the region.
If realized, the proposed data center could form part of OpenAI’s “Stargate” AI infrastructure initiative, a multi-billion-dollar project that U.S. President Donald Trump announced in January. The Stargate program—funded by OpenAI, SoftBank, and Oracle—aims to invest up to $500 billion into advanced computing facilities capable of supporting next-generation artificial intelligence development.
Bloomberg reported that OpenAI’s CEO Sam Altman may officially announce the India data center project during his scheduled visit to the country in September. However, details regarding the exact location, investment size, and project timeline remain uncertain. Industry observers believe such a development could make India a central hub for AI infrastructure in Asia, strengthening its role in the global technology supply chain.
OpenAI has not yet commented on the reports. But analysts note that a large India-based data center could significantly reduce latency for millions of users, enable faster deployment of AI tools, and potentially lower operational costs. If confirmed, this move would mark one of OpenAI’s most ambitious infrastructure investments outside the United States, further intensifying the competition among global tech giants to dominate the artificial intelligence space.
Source: Reuters