TLDRs;
Contents
- OpenAI is planning a 1GW data center in India under its Stargate AI infrastructure initiative.
- The proposed facility would be eight times larger than India’s biggest existing AI-ready data center.
- Despite U.S.-India trade tensions, tech investments remain strong, highlighting India’s importance as OpenAI’s second-largest user base.
- OpenAI is opening a New Delhi office and hiring locally to support its expansion and partnerships.
OpenAI, the San Francisco-based artificial intelligence powerhouse behind ChatGPT, is exploring a groundbreaking move to establish one of India’s largest data centers.
The proposed facility, set to support the company’s Stargate AI infrastructure initiative, would boast an unprecedented 1-gigawatt (GW) capacity. While still in the planning stages, sources indicate the company is actively seeking Indian partners to bring the project to life.
If completed, the site would not only dwarf existing facilities in the country but also reshape India’s digital infrastructure landscape, signaling the next chapter in AI-driven investment across Asia.
Scale that outpaces India’s benchmarks
The sheer size of OpenAI’s envisioned facility would mark a dramatic leap for India’s data ecosystem. Currently, the largest AI-ready data center in North India runs at just 130 megawatts of IT capacity. By comparison, OpenAI’s planned 1GW facility would be nearly eight times larger, putting it in a league of its own.
OpenAI is planning a 1GW data center in India as part of its $500B Stargate expansion. The project, still in early talks with local partners, would be among the country’s largest and support India’s $1.2B AI mission. India is now OpenAI’s 2nd biggest market. pic.twitter.com/JIfkKOCkf4
— Wall St Engine (@wallstengine) September 1, 2025
Industry estimates suggest that India’s entire data center capacity will grow to 4,500 megawatts by 2030, backed by $25 billion in projected investment. If OpenAI’s proposal goes ahead, its single site would account for nearly 22% of the country’s future total capacity, underscoring the rising importance of AI-focused infrastructure.
Expansion amid geopolitical trade strains
OpenAI’s investment push in India comes at a politically sensitive time. Recent U.S.-India tensions have been sparked by Washington’s imposition of 50% tariffs on Indian goods, a move affecting roughly $65 billion in exports.
The tariffs, tied to India’s continued oil imports from Russia, threaten to squeeze labor-intensive industries like textiles and jewelry.
Yet, while trade in physical goods encounters barriers, tech infrastructure investment seems insulated from diplomatic strains. OpenAI’s confidence in India mirrors similar commitments from Microsoft and Google, both of which continue to grow their Indian data footprints despite escalating trade friction.
Hiring and local partnerships in focus
Alongside the data center, OpenAI is setting up an office in New Delhi and ramping up its local hiring strategy. The company is expected to expand its engineering, research, and operations workforce in the region to complement the planned facility.
Local partnerships will be key to success. From power providers to real estate operators, OpenAI will need deep collaboration to execute on such an ambitious project. The potential ripple effects include new jobs, infrastructure upgrades, and a stronger AI ecosystem in one of the world’s fastest-growing digital economies.
With its Stargate project, OpenAI is not only positioning itself at the heart of India’s data future but also making a bold statement that AI infrastructure is set to become as critical as traditional energy grids in the coming decade.
