In a significant move that could reshape India's artificial intelligence landscape, OpenAI is in preliminary discussions with several Indian data center companies, including conglomerate Reliance Industries, to bring a part of its ambitious $500 billion "Stargate" supercomputing project to the country.[1][2][3][4] The talks, which have reportedly been ongoing with Reliance for more than six months, are exploring the feasibility of establishing massive AI data infrastructure on Indian soil, a development actively encouraged by the Indian government.[1][5] New Delhi has formally requested that the creators of ChatGPT invest a substantial portion of the Stargate funds in India and ensure that data from Indian users is stored and processed locally.[1][4][6] This potential collaboration underscores India's growing importance as a key market for AI development and its ambition to become a global leader in the technology.[7]

The Stargate project represents a monumental undertaking in the field of artificial intelligence infrastructure.[2] Announced in January 2025, it is a joint venture with initial equity funders including SoftBank, OpenAI, Oracle, and MGX, aiming to invest $500 billion over four years to build the next generation of AI supercomputers.[5][2][4] With key technology partners like Microsoft, Nvidia, and Arm, the project's goal is to construct hyperscale data centers equipped with advanced chips and robust energy systems capable of supporting AI model training and inference on an unprecedented scale.[2][8] These facilities are designed to house hundreds of thousands of specialized GPUs and will require an uninterrupted, gigawatt-scale power supply to function, securing the immense long-term computing power necessary for OpenAI and its partners to push the boundaries of artificial general intelligence.[2][8] The scale of OpenAI's requirement in India is reportedly at least 1 gigawatt of data center capacity, a substantial figure given that India's current total non-AI cloud data center capacity is less than that.[1][9][10]

OpenAI's exploration of the Indian market has led it to engage with a roster of prominent domestic data center providers. Besides the extended conversations with Reliance Industries, the AI giant is reportedly in talks with firms such as Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters.[1][5][2][3] The discussions have focused on critical logistical considerations, including the installed capacities of these companies, the geographical spread of their facilities, and, crucially, the availability of stable and sufficient power.[1][5][4] Reliance, a formidable contender, is already planning to build what it claims will be the world's largest data center in Jamnagar, Gujarat, alongside a massive new energy complex.[1][2][11] This proposed facility, with a potential capacity of up to 3 gigawatts, could align perfectly with the immense energy and computational needs of a project like Stargate.[12][11] The Indian government's push for local investment is a strategic move to bolster its digital sovereignty and is part of a broader effort to have global tech giants like Microsoft and Google, who already operate large data centers in the country, also store and process Indian data within its borders.[1][4]

The potential entry of a Stargate facility into India carries profound implications for the nation's burgeoning technology and AI sectors. India is already OpenAI's second-largest market by user base, with ChatGPT usage growing fourfold in the past year, making it a critical geography for the company's future growth.[7][9][13] Establishing a local data center would significantly reduce latency and improve the performance of OpenAI's services for Indian users and enterprises.[1][10] It would also align with the government's $1.2 billion IndiaAI Mission, which aims to foster domestic AI innovation and capabilities.[10][13] An investment of this magnitude would be a massive catalyst for the local digital economy, creating jobs and fostering a domestic ecosystem of AI talent and ancillary industries.[6][14] Furthermore, it would dramatically increase India's share of global AI compute capacity, which currently stands at less than one percent, providing a critical resource for Indian researchers, startups, and established companies to develop and deploy cutting-edge AI applications.[1]

In conclusion, the ongoing discussions between OpenAI and Indian firms like Reliance signal a potential watershed moment for India's AI ambitions. While the talks are still in a preliminary phase, the convergence of a government eager for investment, a rapidly growing user market, and a domestic corporate giant willing to build at scale creates a compelling case for a major OpenAI presence. The successful establishment of a Stargate data center would not only accelerate India's journey to becoming a leading AI power but also mark a significant step in the global distribution of the essential infrastructure that will power the next wave of technological advancement. The project, if it comes to fruition, would serve as a powerful validation of India's position as an indispensable partner in the future of artificial intelligence.