New Delhi, August 31 — OpenAI, the parent company of ChatGPT, is reportedly in talks with local partners to establish a large-scale data centre in India with a proposed capacity of at least 1 gigawatt (GW). The move comes as the U.S.-based AI company accelerates its expansion in one of its fastest-growing markets and prepares to open its first office in Delhi NCR later this year.
OpenAI’s India Expansion
India has rapidly emerged as a priority market for global artificial intelligence firms, driven by strong adoption rates, a large developer community, and government-led initiatives under the IndiaAI Mission.
According to OpenAI CEO Sam Altman, India is now the company’s second-largest market after the United States, with the potential to overtake it in the coming years. ChatGPT usage in the country has reportedly grown fourfold in the past year, underlining the scale of demand.
The company has also launched ChatGPT Go, an India-exclusive subscription plan priced at INR 399 per month, enabling payments via UPI. In addition, OpenAI is engaging with schools, universities, and edtech startups to introduce AI copilots for teachers and students, signaling its intent to embed AI deeper into India’s education sector.
OpenAI’s Planned 1 GW Data Centre
As per Bloomberg reports, OpenAI is in discussions with Indian partners to develop a 1 GW data centre, although the timeline and exact location remain undecided. The facility would form part of OpenAI’s Stargate AI infrastructure program, aimed at scaling computing capacity for advanced generative AI models.
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Key Facts about the proposed data centre:
- Capacity: At least 1 GW
- Location: Yet to be finalized
- Partners: Local collaborations under discussion
- Announcement: Expected during Sam Altman’s upcoming India visit
This development is aligned with OpenAI’s plan to bolster local infrastructure and reduce reliance on overseas data centres as AI adoption accelerates in Asia.
AI Infrastructure Race in India
The proposed OpenAI data centre is expected to strengthen India’s position as a global hub for artificial intelligence. The country’s vast digital user base, increasing enterprise adoption, and government-backed AI initiatives have created fertile ground for infrastructure investments.
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India has recently seen major AI-related announcements:
- Google extended free upgrades of Gemini AI Pro to Indian students.
- Perplexity AI partnered with Airtel to offer its Pro version, valued at INR 17,000 annually, at no cost to users.
- Reliance Industries launched its wholly-owned AI subsidiary, Reliance Intelligence, while forging collaborations with Meta and Google to accelerate AI adoption.
Such moves highlight a growing trend of global and domestic players betting on India’s AI growth story.
AI Firms Eye India as Strategic Market
Analysts note that building a 1 GW data centre could significantly improve OpenAI’s ability to deliver low-latency, high-performance AI services in India.
“AI workloads are extremely compute-intensive. Establishing localized hyperscale data centres ensures faster response times for users and reduces dependency on U.S.-based infrastructure,” said a senior technology analyst at a Mumbai-based consultancy.
Industry observers also point out that India’s favorable regulatory environment and skilled talent pool make it an attractive destination for AI infrastructure investments.
OpenAI’s Roadmap in India
Sam Altman is expected to visit India soon, where announcements on the new data centre and further partnerships could be made. The facility, once operational, would likely support OpenAI’s long-term strategy of embedding itself into India’s AI ecosystem while collaborating with government initiatives.
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The company’s upcoming office in Delhi NCR will serve as its India headquarters, focusing on partnerships in education, enterprise adoption, and policy engagement. With India poised to become one of the largest AI markets by 2030, investments in hyperscale data centres are anticipated to play a pivotal role in shaping the country’s AI-driven future.
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