OpenAI Plans 1-Gigawatt Data Center in India

OpenAI is scouting local partners to establish a data center in India with a minimum capacity of 1 gigawatt. The project is part of Stargate, a $500 billion global AI infrastructure initiative involving SoftBank, Oracle, and Microsoft, which was announced in January by U.S. President Donald Trump. The facility is designed to support India as OpenAI's second-largest market by user base and ensure compliance with local data residency and sovereignty regulations.

CEO Sam Altman is expected to formally announce the project during a visit to India in September. This expansion follows the company's decision to register as a legal entity in India and its plan to open its first Indian office in New Delhi by the end of 2024. To further integrate into the region, OpenAI has partnered with the IndianAI Mission and the Ministry of Education to provide 500,000 free ChatGPT licenses to students and educators.

The infrastructure drive occurs amid geopolitical friction, following President Trump's imposition of 50% tariffs on India on August 27. Through its OpenAI for Countries program, the company is coordinating with the U.S. government to ensure that global infrastructure projects align with democratic values.