ChatGPT maker OpenAI is scouting local partners and land in India to build AI data centers as part of its $500 billion Stargate project, according to a Bloomberg report. The project involves big tech companies including Oracle (ORCL), SoftBank (SFTBY), and Arm Holdings (ARM), with each contributing unique expertise and resources to the data center market.
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A proposed facility in India is expected to have at least 1-gigawatt of capacity, marking it as one of the largest planned data centers in the country. The location and timeline have not been finalized, but OpenAI is already in active talks with government officials and potential private sector partners to secure land, regulatory approvals, and energy sources. Details might be announced during CEO Sam Altman’s planned visit to India this month.
Why Has OpenAI Chosen India?
India, now the world’s most populous country, is also OpenAI’s second-largest market by user numbers, particularly among students, researchers, and developers. Recently, the AI startup launched its cheapest subscription plan of $5 per month for ChatGPT in the country, to lure more users.
In August, Altman announced plans for OpenAI’s first office in New Delhi, signaling the company’s commitment to deepening its presence in this high-growth market. OpenAI has international offices outside the U.S. in London, Dublin, Paris, Brussels, Singapore, Tokyo, Munich, Sydney, and São Paulo.
India is attracting global tech giants for AI infrastructure due to its advanced tech ecosystem, expanding renewable energy sector, and a skilled digital workforce. According to data from India’s Department for Promotion of Industry and Internal Trade, computer software and hardware accounted for nearly 15% of India’s total equity foreign direct investment (FDI) between April 2024 and March 2025.
U.S. President Donald Trump has imposed a 50% tariff on Indian goods because it continues to import oil from Russia. This has prompted Indian policymakers to look for new technology partners and reduce reliance on U.S. infrastructure.
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