OpenAI is reportedly planning to build a massive 1 GW data center in India, marking its largest expansion in Asia as part of the $500 billion Stargate infrastructure initiative. The project, a joint venture of OpenAI, SoftBank, Oracle, and MGX, was announced at the White House earlier this year. SoftBank CEO Masayoshi Son chairs the venture, while OpenAI leads operations.
India was chosen due to its importance as OpenAI’s second-largest user base and its growing appeal for global tech investments.
Google is investing $6 billion in a 1 GW data center in Visakhapatnam, a port city on the east coast of India, and Microsoft has pledged $3 billion toward cloud and AI infrastructure over two years. The Indian government has also committed $1.2 billion to its IndiaAI Mission and offers generous incentives, including up to 50% land value exemptions and full stamp duty waivers for data center development.
India’s competitive construction costs — $6.60 per watt in Mumbai, significantly lower than Tokyo or Sydney, make it an attractive location. These factors support forecasts that India’s data center capacity will more than double from 3.31 GW in 2025 to 6.69 GW by 2030, according to Mordor Intelligence.
Last updated: January 11th, 2026
