Plans unveiled for a massive data center, with a capacity of one gigawatt, by OpenAI in India, amidst discussions of potential market overheating.

The tech world is abuzz with news of two significant data center projects planned for India. According to reports by Bloomberg, the Reliance Group, led by Mukesh Ambani, is developing the largest data center in India with a total capacity of three gigawatts, set to come online in 2027. Meanwhile, OpenAI, the American artificial intelligence company, is planning to build a gigawatt-scale data center in India, with the official announcement expected in the coming weeks.

The Reliance Group's data center, if built, will be one of the largest in India. The project, primarily using renewable energy, is expected to require a substantial amount of power. To address this, the Reliance Group is exploring local energy sources. This ambitious project is just one part of the Reliance Group's broader investments in petrochemical and IT infrastructure projects in India.

OpenAI's move into India is not without strategic intent. The company's Stargate project aims to quickly scale up American AI data center capacity and entrench American AI developments as the premier solution for countries. OpenAI has already secured deals with the Indian federal government to build large and small language models for government use, making India its second-largest market, with the potential to grow into its largest.

However, the Reliance Group's project may face competition from OpenAI's efforts. OpenAI is currently in talks with local Indian partners and government agencies to secure land for the data center and is seeking regulatory approval. The company is also in discussions with Indian officials and local companies, but specific partners have not been publicly named yet.

The planned OpenAI data center in India will be part of a larger global expansion. The company has already inked deals for a 520-megawatt-scale data center in Norway and an unprecedented facility in Abu Dhabi. OpenAI's potential data center announcement may be made official during Sam Altman's visit to India later this month.

The tech landscape in India is becoming increasingly competitive, with both the Reliance Group and OpenAI vying for a significant presence. The potential for growth in India's tech sector is immense, making it an attractive market for both domestic and international players.

However, the tech industry is not the only sector under scrutiny. President Trump has instigated a 50% trade tariff with India over its continuing purchase of Russian oil products. Additionally, India has been accused of helping to funnel high-end GPUs from Russia. These issues could potentially impact the tech sector, adding another layer of complexity to the competitive landscape.

Despite these challenges, both the Reliance Group and OpenAI are pushing forward with their ambitious plans. The Reliance Group's data center design would dwarf OpenAI's planned data center in India, but the American company's strategic partnerships and global expansion could give it a competitive edge. The race is on to see who will emerge as the dominant player in India's tech sector.