OpenAI to set up Data Centres in India; Sam Altman says the nation is OpenAI’s 'Second Largest Market' with a 3X increase in users in 2024

OpenAI has begun talks to establish data centre operations in India according to Business Standard. The report says, “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.

Sam Altman’s recent visit to India

During his recent visit to India, OpenAI co-founder & CEO Sam Altman stated that the country is OpenAI's second-largest market, with a threefold increase in users in the last 12 months.

"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," - Sam Altman during a fireside chat with IT minister Ashwini Vaishnaw.

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Data Centres to be built in India

The majority of OpenAI's servers are based in US data centres located in Texas. The business serves customers worldwide, especially in India, by relying on Microsoft's Azure Cloud services.

Microsoft and OpenAI are probably going to collaborate to build a data centre in India. During the Microsoft AI Tour in Bengaluru, the latter recently revealed a $3 billion investment in the nation to increase Azure's infrastructure. 

Microsoft has long preferred Hyderabad as the location for its 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. 

For about INR 267 crore, the business also bought 48 acres of land in Hyderabad last year. On these plots, the IT giant is expected to build a new data centre.

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