OpenAI Considers India for Mega Data Center in Global Stargate AI Push

OpenAI is exploring the possibility of building a massive data center in India, a move that could mark one of the company’s most significant expansions in artificial intelligence infrastructure under its Stargate initiative.

Sources familiar with the matter say OpenAI is seeking local partners to develop a facility with a capacity of at least 1 gigawatt—placing it among the largest AI data hubs in India. If finalized, the project would align OpenAI with global tech leaders such as Microsoft and Google, as well as local investors who are rapidly expanding their footprint in India’s fast-growing digital economy.

The discussions come against the backdrop of ongoing U.S.-India trade tensions, including disputes over tariffs and energy imports. Yet India remains a critical market for American tech firms thanks to its massive population, rising internet adoption, and government-led initiatives to accelerate digital transformation.

While OpenAI has not confirmed the plans publicly, the San Francisco-based company has been scaling up AI infrastructure both in the United States and abroad. Its Stargate program—supported by SoftBank and Oracle—has already committed 4.5 gigawatts of capacity in the U.S., with projects underway in Norway and Abu Dhabi. The Abu Dhabi facility alone is projected to deliver 5 gigawatts, underscoring the global scale of OpenAI’s ambitions.

For India, the potential arrival of an OpenAI data center could carry wide-ranging benefits. Beyond supporting the government’s $1.2 billion IndiaAI Mission, a local hub would enable faster and more tailored AI services, strengthen data privacy, and fuel the creation of homegrown language models. OpenAI has also been deepening its presence in the country, opening an office in New Delhi, hiring locally, and recently introducing a $5 monthly subscription plan for Indian users—its second-largest customer base worldwide.

At a time when Washington is debating restrictions on advanced AI chip exports to certain countries, India’s favorable policy environment positions it as a strong candidate for hosting OpenAI’s next big project.