Pranav Hotkar
New Delhi, September 9, 2025- OpenAI is currently in early-stage discussions with several major Indian data center companies, namely Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters, as part of its broader plans to bring the massive Stargate supercomputing initiative to India.
These discussions mark a significant step in OpenAI’s intent to establish a powerful AI infrastructure presence in the region. The USD 500 billion Stargate project, a global effort co-led by SoftBank and Oracle, aims to build hyperscale AI-focused data centers that can support high-capacity computing needs over the next several years.
Adding to the momentum, OpenAI is simultaneously in parallel negotiations with Reliance Industries, which plans to develop what could become one of the world’s largest data center campuses in Jamnagar, Gujarat.
These talks signal a fast-moving effort to secure both technical partnerships and large-scale real estate and power infrastructure, the key factors necessary for a facility with at least 1 gigawatt of capacity, as previously reported.
Industry observers note that India stands out as OpenAI’s second-largest user market, offering competitive advantages in land and energy costs. A large-scale localized data center could dramatically reduce latency and improve service delivery across the region.
The Indian government’s push has also been influential in shaping these talks.
“India is becoming a key market for OpenAI and also has potential to become a large revenue generator, so the company should invest a large percentage of the $500 billion Stargate project in India," said the official. "It should start storing and processing the data of residents within the country as well, since others like Microsoft and Google already have large data centres in the country and Meta and AWS are expanding," the official said, adding: "It will reduce their latency and improve their service as well."
While no formal commitment has been confirmed, expectations are high. OpenAI CEO Sam Altman is scheduled to visit India later this month, fueling anticipation of potential announcements around site selection, partner designation, or even project timelines.
If finalized, this project would represent a landmark investment in India’s AI and data infrastructure, enabling local innovation, strengthening digital sovereignty, and positioning the country as a leading node in the global AI network.
