OpenAI Plans to Build Huge Data Center in India as Part of Its Expansion in Asia

SadaNews - OpenAI is seeking to establish a new massive data center in India, a move that could signify a major advancement in the expansion of its artificial intelligence infrastructure under the "Stargate" project in Asia.

The developer of the "ChatGPT" application is currently in talks with local partners to create a data center with a capacity of no less than one gigawatt in the world's most populous country, making it one of the largest in India, according to sources familiar with the matter who requested anonymity due to the sensitive nature of the information.

This comes after major companies like "Microsoft" and "Google", along with the richest man in Asia, invested similarly in this sector.

OpenAI's Project in India

The timing and location details of the project remain unclear, while sources have suggested that CEO Sam Altman may announce the facility during his anticipated visit to India this month, although these plans could change. The company declined to comment on the matter.

OpenAI's ambitions in India coincide with rising trade tensions between Washington and New Delhi, after U.S. President Donald Trump imposed massive tariffs of 50% on Indian goods in response to trade barriers imposed by India, and to compel it to reduce its imports of Russian oil, a move that threatens decades of U.S. efforts to strengthen relations with India.

Collaboration with the Indian Government

The establishment of an industrial data center of this magnitude will enable OpenAI to offer smart chatbots tailored for users in India, alleviating concerns about data transfer outside the country. The company has also committed to working with the Indian government under the "India AI" initiative, valued at $1.2 billion, aimed at developing both large and small language models that serve the Indian local market.

OpenAI is intensifying its expansions in India, its second-largest market globally in terms of user numbers, as it prepares to open an office in the capital New Delhi and expand its local team through hiring; it has also launched a monthly subscription plan priced at $5 to attract more users.