OpenAI eyes 1GW data centre in India through Stargate initiative

• CEO Sam Altman may unveil more concrete plans during an upcoming (yet to be confirmed) visit to India.

OpenAI, the renowned AI player behind ChatGPT, is setting its sights on building a massive 1GW data centre  in India as part of the US-India joint “Stargate” initiative, sources familiar with the matter told Bloomberg.

The ambitious move signals a significant leap forward for India’s AI infrastructure and its positioning on the global tech stage.

At present, OpenAI is actively searching for local partners to help bring the project to life. Precise details such as the finalised location and development schedule remain under wraps, but there is wide anticipation that CEO Sam Altman could unveil more concrete plans during an upcoming (yet to be confirmed) visit to India.

The initiative follows OpenAI’s recent announcement that it will open its first office in New Delhi later this year. India, now the world’s most populous nation, stands as OpenAI’s second-largest user base.

Strong appetite

To cater to this surging interest, the company also rolled out its most affordable ChatGPT subscription to Indian users, cutting monthly costs to just $5—significantly less than the $20 per month that US customers pay.

Furthermore, India claims the highest number of student users on ChatGPT worldwide, underlining the country’s strong appetite for AI tools and education.

The Stargate initiative itself is a grand collaboration launched by US President Donald Trump shortly after taking office, bringing together heavyweights like SoftBank, Oracle, and Abu Dhabi’s MGX investment group.

Although Stargate leaders pledged to invest $100 billion immediately (ultimately scaling to $500 billion), actual fundraising and construction have lagged behind initial promises, as acknowledged by SoftBank CEO Masayoshi Son earlier this summer.

Deepening partnerships

If realised, OpenAI’s data centre would land at a tense juncture in US-India relations. New Delhi has recently faced hefty 50 per cent tariffs on exports to the US, which took effect last week as part of Trump’s new trade policies.

In response, Indian officials have announced intentions to both diversify export markets and deepen partnerships with countries beyond the US, making major tech investments like Stargate even more strategic.

The technology sector has proven a magnet for foreign investment: for the fiscal year April 2024 to March 2025, India’s computer software and hardware industry was the country’s second-largest FDI recipient—just behind the service sector—according to the Department for Promotion of Industry and Internal Trade.

Computer tech attracted 15 per cent of total FDI inflow over this period, highlighting robust confidence from global investors.

As part of Stargate, OpenAI introduced the “OpenAI for Countries” program in May, promoting AI development guided by “democratic values”.

However, some critics remain skeptical, commenting on the company’s perceived double standard due to its close relationship with President Trump, whose controversial 2020 election stance and role in the January 6 Capitol events continue to attract scrutiny.