OpenAI, the AI pioneer behind ChatGPT, is reportedly planning a massive 1-gigawatt data center in India as part of its ambitious Stargate initiative, according to a Bloomberg report dated September 1, 2025. This move marks a significant step in expanding the company’s global AI infrastructure, with India poised to become a key hub in Asia. The Stargate project, a $500 billion venture backed by SoftBank, Oracle, and MGX, aims to build hyperscale data centers to meet the surging demand for AI computing power. The proposed Indian facility, one of the largest of its kind in the country, underscores OpenAI’s strategic focus on its second-largest market by user base.
The 1GW data center, potentially costing over $2 billion, is designed to support next-generation AI workloads, reduce latency for South Asian users, and comply with local data residency laws. India’s digital economy, with over a billion internet users and a rapidly growing AI sector, makes it an ideal location. OpenAI is scouting local partners, including conglomerates and tech firms, to provide land, power, and operational expertise. While the exact location and timeline remain undisclosed, CEO Sam Altman may announce details during his planned visit to India in September 2025. This follows OpenAI’s recent registration as a legal entity in India and plans to open a New Delhi office later this year.
The Stargate initiative, launched in January 2025 with U.S. government backing, aims to deploy 10GW of AI infrastructure globally, with 4.5GW already under development in the U.S., including a flagship site in Abilene, Texas. Internationally, OpenAI has announced a 520MW facility in Norway and a 5GW project in Abu Dhabi, of which it will use 1GW. The Indian data center would account for 22% of India’s projected 4,500MW data center capacity by 2030, per market research. This scale, dwarfing typical data centers (20–100MW), highlights the energy demands of advanced AI models like GPT-5, with power needs equivalent to 800,000 U.S. households.
OpenAI’s expansion aligns with India’s $1.2 billion IndiaAI Mission, aiming to develop homegrown AI models. The company’s “OpenAI for Countries” program seeks to foster sovereign AI infrastructure, countering China’s influence while strengthening U.S.-India tech ties. However, challenges loom, including India’s grid capacity for such a power-intensive facility and geopolitical tensions, with U.S. tariffs on Indian goods complicating relations. Critics also raise environmental concerns, as 1GW facilities often rely on fossil fuels unless paired with renewables.
Posts on X reflect excitement about India’s growing AI ecosystem, with OpenAI’s New Delhi office and low-cost ChatGPT Go plan ($5/month) boosting local adoption. Yet, competition from Google, Meta, and local players like Mukesh Ambani’s ventures, alongside lawsuits over data usage, pose hurdles. If realized, this data center could redefine AI accessibility in Asia, fostering innovation and economic growth.
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