OpenAI's Stargate project may extend to India with massive data center

According to a report by Bloomberg, OpenAI s in discussions with potential local partners in India to build a facility with at least 1 gigawatt of capacity.

OpenAI is weighing a plan to set up a massive data center in India, a move that could mark one of its biggest steps in Asia under its Stargate infrastructure program.

According to a report by Bloomberg citing people familiar with the talks, the company behind ChatGPT is in discussions with potential local partners to build a facility with at least 1 gigawatt of capacity. If it goes ahead, the site would be among the largest in India, where global players like Microsoft and Google, along with local business leaders, have already invested heavily in such projects.

The location and timeline are still undecided. Some sources said CEO Sam Altman may reveal the project during his upcoming trip to India, though those plans could still change.

This push comes as trade tensions rise between Washington and New Delhi. President Donald Trump has slapped a 50% tariff on Indian goods, citing both trade barriers and India's purchases of Russian oil, disrupting years of U.S. efforts to strengthen ties with the country. OpenAI declined to comment on its potential India expansion.

Expanding global infrastructure

In recent years, OpenAI has poured resources into AI infrastructure in the U.S. and abroad. In the U.S., it is building out its $500 billion Stargate project with the backing of SoftBank and Oracle, with energy commitments that now exceed 4.5 gigawatts — enough to power millions of homes. Trump has praised the effort as a boost to U.S. technological leadership.

Beyond the U.S., OpenAI is working with governments on "OpenAI for Countries," a global program aimed at building AI infrastructure in line with democratic values. The company has presented it as a counterweight to China's AI push. More than 30 countries have expressed interest, and OpenAI is pursuing around ten initial partnerships. Confirmed projects include a facility in Norway that could reach 520 megawatts and a huge 5-gigawatt site in Abu Dhabi, where OpenAI will use one-fifth of the power.

Why India matters

Building a large-scale data center in India could help OpenAI deliver localized AI chatbots while easing concerns about data transfers out of the country. The company has already pledged support for India's $1.2 billion IndiaAI Mission, which aims to create both large and small language models for domestic use.

India is OpenAI's second-largest market by user numbers, and the company is stepping up its presence there. Last week, OpenAI’s Sam Altman annoucned that the company is planning to open an office in New Delhi, expand its hiring. OpenAI has also rolled out a $5 monthly plan tailored for Indian users.