OpenAI is reportedly planning to build a massive new data center in India with a capacity of at least 1 gigawatt, according to a report by Bloomberg. The ChatGPT maker is reportedly in talks with local partners to establish the facility, which would represent a significant step forward in its Stargate AI infrastructure agenda.

The location and timeline of the project remain unconfirmed, but industry sources suggest that the company could make a formal announcement during CEO Sam Altman’s scheduled visit to India this month. The industrial-scale facility would allow OpenAI to deliver customized AI chatbots to Indian users while also addressing data residency concerns by ensuring local storage of user data.

Investment and Global Expansion Context

OpenAI first unveiled the Stargate initiative in January, a large-scale data infrastructure program developed in partnership with SoftBank, Oracle, and Microsoft. The consortium aims to build approximately 4.5 gigawatts of capacity across the United States with an estimated budget of USD 500 billion.

The company has also positioned itself as the anchor tenant in parallel data center projects in Norway and the UAE.

India’s Growing Role in OpenAI’s Strategy

India has emerged as a critical growth market for OpenAI. The company revealed that the country is now its second-largest market for ChatGPT globally, with usage growing fourfold in the past year. To strengthen its local presence, OpenAI launched the INR 399 per-month ChatGPT Go subscription in August and confirmed plans to open its first Indian office in New Delhi.

Recruitment efforts are already underway, with multiple roles advertised on the company’s careers portal. The company has also partnered with the IndianAI Mission to foster the development of both large and small language models within the country.

Education and Local Partnerships

OpenAI is also expanding its presence in India’s education sector. In collaboration with the Ministry of Education, the company announced a plan to provide 500,000 free ChatGPT licenses to students and educators. In a blog post last week, OpenAI highlighted that India is home to the world’s largest student population using ChatGPT, making it the platform’s biggest hub for educational adoption.

“ChatGPT is now one of the most widely used learning tools in the world. Nowhere is this more true than in India, which is home to the largest student population on ChatGPT globally, with millions turning to it for homework help, exam prep, and to explore new ideas,” the company said. The upcoming India facility would not only advance OpenAI’s Stargate project but also signal the company’s deepening commitment to one of its most significant global markets.

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