New Delhi: OpenAI, the San Francisco-based artificial intelligence powerhouse, is set to make a bold entry into the Indian market with plans to establish a state-of-the-art data center with a minimum capacity of one gigawatt, according to Bloomberg News. This initiative forms part of OpenAI’s larger global infrastructure expansion project, codenamed "Stargate," which is being pursued in close collaboration with tech giants including Microsoft, Oracle, and SoftBank.
If realized as envisioned, this facility will rank among the largest data centers in India, reflecting not only the surging demand for AI services in the region but also India’s emerging role as a strategic hub in the global AI ecosystem. The development comes amid an era where AI adoption is accelerating across industries, with enterprises, startups, and government initiatives increasingly relying on AI for operations, analytics, and automation.
While precise details regarding the site and construction timeline remain under wraps, industry insiders suggest that OpenAI is actively scouting for local partners to facilitate infrastructure, regulatory compliance, and operational deployment. The company has already registered a formal legal entity in India and is reportedly preparing to inaugurate its first office in New Delhi later this year.
CEO Sam Altman is expected to make a high-profile announcement during his visit to India in September, a move seen as signaling OpenAI’s long-term commitment to establishing a strong foothold in South Asia. The firm’s entry into India is being interpreted as a strategic play to enhance AI computing capabilities closer to one of the world’s largest technology and talent markets, while also reducing latency and improving service delivery for both enterprise and consumer applications across the region.
According to experts, the one-gigawatt capacity target is particularly ambitious, as it positions the Indian data center among the most powerful in the country and underscores the scale of OpenAI’s global expansion strategy. By increasing local compute capacity, OpenAI aims to provide faster, more reliable AI services for its growing user base, while also catering to enterprise-grade clients who require low-latency, high-performance computing. The project is expected to not only create direct employment opportunities in engineering, operations, and AI research but also indirectly stimulate the broader technology ecosystem in India through vendor partnerships, infrastructure development, and talent cultivation.
OpenAI’s move comes at a time when India is aggressively promoting digital transformation and AI adoption through national initiatives, making it a favorable environment for high-tech investments. The proposed data center could support a wide range of AI-driven applications, from natural language processing and generative AI models to enterprise automation and advanced analytics, reinforcing India’s position as a key player in the global AI supply chain. Furthermore, the collaboration with established players like Microsoft and Oracle signals an integrated approach to infrastructure, cloud computing, and enterprise solutions, positioning OpenAI to leverage both local and global expertise.
As the AI race intensifies worldwide, OpenAI’s planned entry into India is a clear statement of intent, demonstrating confidence in the country’s technology ecosystem and talent pool. Analysts note that the establishment of such a mega facility could encourage other global AI firms to consider similar investments in India, potentially making the country a hub for AI research, development, and high-performance computing in the Asia-Pacific region.
The project aligns with OpenAI’s broader vision of scaling AI infrastructure globally, ensuring robust and reliable support for its rapidly growing suite of AI tools and enterprise offerings. With a combination of policy support, technical collaboration, and a thriving AI market, India is poised to become a cornerstone in OpenAI’s international expansion strategy.