OpenAI plans to build a massive one-gigawatt data center in India as part of its $500 billion Stargate project, aiming to expand its global AI infrastructure alongside partners like SoftBank and Oracle. This move highlights India’s growing importance in the AI sector amid complex geopolitical dynamics involving the US, India, and China, with the US administration closely monitoring the development amid ongoing trade tensions.
OpenAI is planning to establish a massive data center in India as part of its broader global expansion strategy. The company aims to collaborate with a local partner to build a data center with a capacity of one gigawatt, which would make it one of the largest, if not the largest, in India. This move reflects OpenAI’s growing ambitions and the significant growth it has experienced in the Indian market. The initiative aligns with similar efforts by tech giants like Google and Microsoft, who have already been developing large-scale facilities in India to support their AI ambitions.
This planned data center is part of OpenAI’s larger Stargate project, which involves a substantial investment of around $500 billion alongside partners such as SoftBank and Oracle. The project aims to build up to four and a half gigawatts of data center capacity globally, with ongoing agreements in the UAE and the Middle East. India is now a key focus in this expansion, and the announcement could come as soon as this month, coinciding with OpenAI CEO Sam Altman’s expected visit to India.
The timing of this development is particularly sensitive given the current geopolitical climate. India’s Prime Minister has recently been strengthening ties with China amid some tensions in the US-India relationship. This raises questions about how OpenAI’s India data center project will fit into the broader geopolitical dynamics, especially considering the complex relations between the US, India, and China.
The US administration’s response to OpenAI’s India plans will be closely watched. There are ongoing trade tensions, including 50% tariffs imposed by the US on many Indian goods due to India’s purchase of Russian oil. Despite these challenges, the Trump administration has been supportive of OpenAI’s efforts to build sovereign AI infrastructure beyond US borders, as evidenced by previous statements and events in the UAE. The administration aims to have the US set global standards for AI development and deployment.
Overall, OpenAI’s planned data center in India represents a significant step in the company’s global expansion and AI infrastructure development. It highlights the growing importance of the Indian market in the AI sector and reflects broader geopolitical and economic considerations. The project underscores the intersection of technology ambitions with international relations, trade policies, and strategic partnerships in the evolving landscape of global AI development.