OpenAI is considering a plan to set up a massive new data centre in India, a project that could become one of its largest investments in Asia under the US government’s Stargate initiative.
As reported by Bloomberg, people familiar with the matter say the ChatGPT-maker is in talks with local partners about building a facility with at least a gigawatt of capacity. If completed, it would rank among the biggest in India, where Microsoft, Google, and billionaire Mukesh Ambani have already poured billions into similar sites to support cloud and AI growth.
The exact location has not been finalised, and the timeline remains uncertain. Some sources suggest CEO Sam Altman may announce the project during an upcoming visit to India, though those plans are still shifting.
OpenAI’s possible expansion in India comes as trade friction between Washington and New Delhi deepens. US President Donald Trump recently imposed a 50% tariff on Indian goods, saying it was a response to India’s trade barriers and purchases of Russian oil. The move disrupted years of US diplomacy aimed at strengthening ties with the South Asian nation. OpenAI declined to comment on whether its India plans might be affected by these tensions.
Building AI infrastructure worldwide
The company has embarked on an aggressive push to expand its infrastructure both in the US and overseas. The signature $500 billion Stargate project in the US is being developed with backing from SoftBank and Oracle. OpenAI recently raised its US capacity commitment by 4.5 gigawatts – a figure that rivals the energy demand of several million households. Trump has publicly praised the project, framing it as a win for US technology.
Beyond its home market, OpenAI has also launched “OpenAI for Countries,” a global programme aimed at building AI infrastructure alongside governments that share what the US terms its own ‘democratic values.’ OpenAI has pitched the plan as a way for the US and its partners to guide AI development in a way that balances China’s growing influence.
More than 30 countries have expressed interest in joining, with OpenAI pursuing about 10 partnerships to date. Confirmed projects include a facility in Norway that could grow to provide 520 megawatts capacity, and a five gigawatt complex in Abu Dhabi. In the latter case, OpenAI will use about 1 gigawatt of computing power itself, leaving the rest available for other customers.
Security questions abroad
The Abu Dhabi venture has triggered debate in Washington. Some officials argue such projects are necessary to counter China’s global AI ambitions, while others worry about security risks tied to shipping thousands of Nvidia chips to countries with historic links to Beijing.
Since 2023, the US has required approval for any AI chip exports to the UAE. India, however, is not subject to those restrictions. The Trump administration dropped a plan recently that would have expanded AI chip export controls worldwide, leaving India in a stronger position to attract high-performance computing investments.
Why India is key for OpenAI’s AI strategy
For OpenAI, India offers more than just market size. A large-scale data centre in the country could allow it to train and deploy models locally, easing concerns about sending users’ data abroad. It would also align with New Delhi’s $1.2 billion IndiaAI Mission, which aims to develop large and small language models tailored to Indian languages and contexts. OpenAI has already pledged support for the initiative.
India is also OpenAI’s second-largest market by users. To strengthen its presence, the company plans to open an office in New Delhi, expand its hiring, and has launched a $5 monthly subscription plan designed for local customers. The moves suggest India is becoming central to OpenAI’s AI strategy.
If the data centre plan goes ahead, it would mark one of the company’s most ambitious steps yet in its global buildout – and a sign of how AI is becoming deeply tied to trade policy, energy infrastructure, and geopolitics.
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