"Stargate" Heads East? OpenAI Plans Mega AI Data Center in India

TradingKey - AI leader OpenAI is accelerating its global infrastructure deployment, with its latest target being the key growth market — India.

According to sources familiar with the matter, OpenAI plans to invest in building a hyperscale data center in India with a power capacity of at least 1 gigawatt (GW). This project will be part of its ambitious "Stargate" AI infrastructure initiative and, upon completion, is expected to rank among India's largest data centers.

Currently, specific details such as the exact location and construction timeline for this Indian data center have not been finalized. Reports suggest that Altman may reveal more progress on the project during his India visit in September.

The choice of India as the site for such a significant investment stems from the country's growing strategic importance to OpenAI. OpenAI CEO Sam Altman recently stated publicly that, in terms of user base, India has become its second-largest global market after the United States, with user numbers quadrupling over the past year. He further predicted that the Indian market "could soon become the largest market."

To better align with Indian market demands and enhance competitiveness, OpenAI has launched an India-specific subscription service called ChatGPT Go in mid-August, with the monthly fee significantly reduced to 399 Indian rupees, far lower than the existing ChatGPT Plus (1,999 rupees/month) and ChatGPT Pro (19,990 rupees/month) plans. This reflects OpenAI's high regard for the Indian market and its proactive response to the fiercely competitive environment (such as the rapid growth of competitors like India-based Perplexity AI).

The company has already completed legal entity registration in India and is in the process of building a local team. In August of this year, OpenAI confirmed plans to open its first Indian office in New Delhi later this year.

Notably, OpenAI's expansion in India comes against the backdrop of delicate trade tensions between Washington and New Delhi. Former U.S. President Trump's imposition of tariffs on Indian goods and punitive measures due to India's purchase of Russian oil had previously strained bilateral relations.