Updated 1 September 2025 at 13:06 IST

Namaste ChatGPT! What to Expect from OpenAI's First Data Centre in India

OpenAI will set up a data centre in India soon, with a report suggesting that the company is seeking local partners.

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OpenAI is reportedly scouting local partners to set up a data centre in India. | Image: File

India is at the centre of OpenAI’s global expansion plan, with the Microsoft-backed company reportedly planning its first data centre in the country. Bloomberg has reported that OpenAI is scouting local partners to set up a data centre with at least 1 gigawatt capacity, marking its biggest push in Asia as part of the Stargate project.

While the location of OpenAI’s data centre is unclear, the company’s foray into India appears aggressive. Last month, OpenAI registered as a legal entity in India and started hiring for various roles. These positions are expected to be based in OpenAI’s potential office in New Delhi, marking the company’s expansion in its second-largest market by user share. OpenAI CEO Sam Altman is also set to visit India later this month to make a flurry of announcements.

“We are opening our first office in India later this year! And I’m looking forward to visiting next month,” said Altman in a post on X (formerly Twitter).

What to expect from OpenAI’s data centre?

The India operations will be crucial to OpenAI’s plan to expand globally, backed by its signature $500 billion Stargate project in the US and other key markets. The AI company has secured a partnership with SoftBank Group and Oracle, along with a nod from US President Donald Trump, for its data centre buildout on American soil and overseas. With support from the US government, OpenAI is seeking partnerships with nations such as India, the United Arab Emirates, and Norway, among others, to build AI infrastructure with “democratic values.”

India-based data centre will also help OpenAI and, ultimately, the US government, tackle China’s growing dominance in the AI industry. Trump has directed nearly all technology companies headquartered in the US to focus on building and fostering their products and services locally, but many of these companies have pitched co-building their infrastructure with key countries for an effective counter to China. Being a frontrunner in the ‘China+1’ strategy for many companies, India is vital to the growth of the AI industry, fueled by a diverse and large user base and use cases. The local AI ecosystem, buoyed by government policies, is also well-positioned to catalyse global efforts, like the one from OpenAI.

Read more: TikTok Parent ByteDance Starts Hiring in India: Is the Ban Over for Chinese App?

Published By : Shubham Verma

Published On: 1 September 2025 at 13:06 IST