OpenAI Plans to Establish Data Centre Operations in India

OpenAI has initiated discussions to set up data centre operations in India, Business Standard has reported. The centre is expected to store data of Indian users and some neighbouring countries.

According to the report, “They are talking to some data centre operators right now, but these are very initial phases of their plan. It may take some time for them to get down to the details, such as the location and capacity.” The company plans to complete the process in 2025 but has not set a timeline.

Most of OpenAI’s servers are based in data centres in Texas, US. The company relies on Microsoft’s Azure Cloud services to serve users globally, including India.

During his recent visit to India, OpenAI CEO Sam Altman said that India is the company’s second-biggest market. OpenAI has seen a three-fold increase in users from the country over the past year.

“I see people in India are building with AI at all levels of the stack - chips, models, you know, all of the incredible applications. So, I think India should be doing everything. I think India should be one of the leaders of the AI revolution,” Altman said on February 5 during a fireside chat with IT minister Ashwini Vaishnaw.

OpenAI is likely to collaborate with Microsoft to build a data centre in India. The latter recently announced a $3 billion investment in the country to expand Azure’s infrastructure, during the Microsoft AI Tour in Bengaluru.

Hyderabad has long been Microsoft’s preferred city for building AI infrastructure and data centres in India. Microsoft Corporation (India) Private Limited recently purchased 25 acres of land for INR 181.25 crore in Mekaguda near Hyderabad. Last year, the company purchased 48 acres of land in Hyderabad for nearly INR 267 crore. The tech giant is expected to develop a new data centre on these plots.