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Business Standard

OpenAI starts data centre operations in India, to host data locally

The data of Indian ChatGPT Enterprise, ChatGPT Edu, and the OpenAI API (application programming interface) Platform users will now be stored locally in the country to help companies using these products meet local data sovereignty requirements when using OpenAI products in their businesses and building new solutions with AI, the company said on Thursday. Eligible customers of the ChatGPT API Platform can enable data residency by creating a new project in the API Platform dashboard and selecting the relevant country. 'Currently, data storage for the API Platform will be stored in the selected region,' OpenAI said. Business Standard had in February reported that ChatGPT maker OpenAI had initiated the process of setting up data centre operations in India to support the growing number of users and burgeoning load of the extensive use cases of its artificial intelligence tools in the country. India has grown to be the second-largest market for OpenAI, and the number of users in the country tripled over 2024, the company's chief executive officer Sam Altman had said during his visit to the country in February. 'Seeing what people are building in India with AI at all the levels of stack, chips, models… you know all of the incredible applications, I think India should be doing everything. It is really quite amazing to see what the country has done and embraced the technology,' Altman had said during his India visit on 5 February. After Altman's visit, OpenAI executives had later that week held two separate meetings—the first with government officials from the Prime Minister's Office, the US Embassy in India, the Ministry of Finance, and the Ministry of Home Affairs, and a second one with technology policy advocacy groups, which was organised by TQH (The Quantum Hub). Both these meetings, held behind closed doors, also saw OpenAI executives, including vice-president of engineering Srinivas Narayanan, explain the products and offerings and the importance of the country in the overall plans of the company, sources had then told BS. On Thursday, apart from India, OpenAI also announced a data residency programme for ChatGPT Enterprise, ChatGPT Edu, and API Platform users in Japan, Singapore, and South Korea. The company had earlier announced similar data residency programmes in Europe. 'Data residency builds on OpenAI's robust data privacy, security, and compliance features, which support hundreds of organisations partnering with OpenAI across Asia today—from start-ups and large enterprises to academic institutions—including Kakao, SoftBank, Grab, Singapore Airlines, and many more,' the company said in a blog post.