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OpenAI Plans 1GW Data Center in India to Boost AI Infrastructure

By: Cynthia Okafor

September 2, 2025

2 minute read

OpenAI is set to acquire product testing startup Statsig in a $1.1 billion all-stock deal. Learn how this acquisition strengthens ChatGPT’s product development and OpenAI’s global AI expansion.

ChatGPT parent company OpenAI is reportedly planning to establish a data center in India with at least 1 gigawatt (GW) capacity, according to a Bloomberg News report on Monday. The move highlights OpenAI’s growing commitment to expanding its presence in Asia’s fast-growing artificial intelligence (AI) market.

OpenAI Expands Presence in India

Backed by Microsoft, OpenAI has formally registered as a legal entity in India and is actively building a local team. In August, the company confirmed plans to open its first India office in New Delhi later this year, strengthening operations in what is now its second-largest market by user base.

The proposed large-scale data center would represent a major milestone in OpenAI’s global expansion, particularly under its Stargate AI infrastructure program.

What We Know About the Data Center

  • Capacity: At least 1 gigawatt, a scale that positions it as one of the largest AI-focused data centers in the region.
  • Purpose: To support OpenAI’s advanced artificial intelligence applications, including ChatGPT and other AI-driven solutions.
  • Partners: OpenAI is reportedly scouting local Indian partners to help establish the facility.
  • Announcement Timeline: Sources suggest that CEO Sam Altman may reveal more details during his visit to India in September 2025.

Stargate AI Infrastructure Push

The India project ties into Stargate, a private-sector AI infrastructure investment program announced in January 2025. The initiative involves SoftBank, OpenAI, and Oracle, with an estimated funding of up to $500 billion. Stargate aims to build advanced data centers worldwide to power next-generation AI systems.

Why This Matters for India

India has quickly emerged as one of the largest user bases for OpenAI products, with millions relying on ChatGPT for education, business, and personal use. A local data center would:

  • Improve speed and reliability of AI services.
  • Support the country’s growing AI and tech ecosystem.
  • Enhance data compliance and security in line with local regulations.
  • Attract further investment into India’s digital infrastructure.

Bottom Line

While the location and timeline of OpenAI’s India data center remain unconfirmed, the project signals a transformative step for both OpenAI and India’s AI sector. If completed, the 1GW facility would cement India’s role as a key hub in the global AI revolution.

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