OpenAI mulls $500B Stargate expansion in India-based gigawatt-scale data center

OpenAI is reportedly exploring plans to build a large data center in India with a capacity of at least one gigawatt. The project will be part of the $500 billion Trump-backed Stargate AI initiative. 

The report indicated that OpenAI is seeking Indian local partners to build a site with at least one gigawatt capacity. In the meantime, the exact location and multiple details of the plan remain undisclosed.

According to the Bloomberg report, if the plan is executed, the ChatGPT developer would join the current players investing heavily in the country, including Alphabet, Microsoft, and billionaire Mukesh Ambani. 

India to potentially host a one-gigawatt Stargate data center 

The ChatGPT developer has already set up a local company in India and plans to open a new office in Delhi this year. The company is also building a local team in the country. OpenAI has not publicly commented on the report.

OpenAI’s potential project plan is part of the Trump Stargate AI initiative, which he introduced in January. The Trump administration aims to use the AI initiative plan, a private sector investment valued at an estimated $500 billion, to advance AI infrastructure worldwide. Initial partners for the project included SoftBank, OpenAI, Oracle, and MGX. Technology partners such as Nvidia, Microsoft, and Arm have joined the initiative along the way. 

Google is investing nearly $6 billion in India to build a one-gigawatt data center. Ambani Industries is also reportedly working on India’s biggest data center capacity. The report revealed that if developed, OpenAI’s project would be nearly eight times larger than the current largest AI-ready data center in North India. 

According to projections, India is expected to have about 4,500 megawatts of data center capacity by 2030, with a total investment of around $25 billion. OpenAI’s planned one gigawatt capacity would account for 22% of the forecast. 

Industry observers await Altman’s speech ahead of his visit to India  

Sam Altman, OpenAI’s CEO, will visit India in September and potentially deliver a keynote speech on the data center plan. According to the report, India stands to gain a competitive edge by combining its consumer base with an AI infrastructure required to sustain the next generation of AI systems. 

Altman noted that India’s ChatGPT userbase has grown fourfold throughout the past year, prompting ChatGPT Go’s introduction last month. ChatGPT Go is a low-cost subscription priced under $5 specifically designed for the Indian market. The subscription includes GPT-5 ChatGPT’s latest model, which allows for expanded image generation and chatbot interaction.  

The ChatGPT AI firm also committed to supporting India’s $1.2 billion ‘IndiaAI Mission’, which seeks to integrate AI into economic development. The company also launched the ‘OpenAI for Countries’ program earlier this year under the Stargate initiative to build in-country data centers in collaboration with governments. At least ten projects are expected to be explored under the initiative. 

The timing of the AI data center plan comes amid trade disputes between the U.S. and India. Cryptopolitan reported recently that Trump imposed 50% tariffs on Indian goods. The U.S. government cited concerns over India’s purchase of Russian discounted goods. President Narendra Modi condemned the new tariffs and vowed to protect India’s farmers and small industries.  

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