OpenAI Plans to Establish Data Centre in India: Report

OpenAI, the San Francisco-headquartered AI pioneer, is exploring plans to build a large-scale data centre in India, as part of its strategy to expand infrastructure for artificial intelligence services. This move aligns with India becoming the second-largest user base for ChatGPT globally, after the United States, and marks a major step in OpenAI’s push to scale AI operations in one of its fastest-growing markets.

OpenAI’s India Expansion Strategy

Earlier, OpenAI announced plans to open its first office in New Delhi later this year, formally establishing an entity in India and initiating hiring for a local team. The India office is part of the company’s broader expansion in regions where demand for AI services is growing rapidly.

Building a data centre in India would allow OpenAI to offer industrial-scale AI services locally, addressing concerns over cross-border data transfers and latency while meeting domestic regulatory requirements.

Data Centre Plans and Capacity

According to Bloomberg, OpenAI is seeking local partners to initiate work on the Indian data centre project. While details on the site location and timeline are not publicly available, the planned facility is expected to have at least 1-gigawatt capacity, potentially making it one of the largest data centres in the country.

OpenAI has already invested in infrastructure globally through its Stargate project, aiming to raise $500 billion in the US for AI infrastructure. Partnerships with SoftBank Group and Oracle have helped the company build data centres totaling 4.5 gigawatts capacity in the United States.

AI Infrastructure Investments

OpenAI CEO Sam Altman has previously announced ambitions to invest trillions of dollars in AI infrastructure over the coming years. Expanding into India allows the company to scale ChatGPT services efficiently, ensuring high performance for Indian users and businesses.

Large-scale infrastructure is critical for Generative AI (GenAI) applications, which require high computing power and low-latency data processing. By localizing operations in India, OpenAI can support the growing domestic demand for AI services in industries such as IT, healthcare, fintech, and education.

India’s Growing Data Centre Ecosystem

India’s data centre industry has seen significant growth, driven by digitalization, cloud adoption, and AI penetration. According to a CRISIL report (December 2024), India’s total data centre capacity is expected to more than double to 2–2.3 GW by 2026–27.

Major global tech companies are also expanding in India. For instance, Google announced a $6 billion investment in July 2025 to build a 1-gigawatt data centre in Andhra Pradesh, including power infrastructure. These developments highlight India’s emergence as a key hub for AI and cloud computing infrastructure.

Significance of OpenAI’s Move

The proposed Indian data centre would provide multiple benefits:

• Local AI service delivery: Reducing latency and improving user experience for Indian businesses and consumers

• Regulatory compliance: Ensuring data sovereignty and alignment with domestic policies

• Support for GenAI growth: Meeting the growing computing demand for AI applications

This step reflects OpenAI’s commitment to global expansion while supporting India’s digital transformation and AI adoption.

Conclusion

OpenAI’s plans to establish a massive data centre in India underscore the country’s growing importance in the global AI ecosystem. With a strong user base for ChatGPT and increasing demand for AI-powered solutions, India is poised to become a key hub for AI infrastructure investment. By localizing data centre operations, OpenAI can provide industrial-scale AI services, enhance performance, and contribute to India’s digital economy.