OpenAI has announced that it will store user data locally in India for its ChatGPT Enterprise, ChatGPT Edu, and OpenAI API services, ensuring compliance with local data sovereignty requirements.

This program highlights OpenAI's commitment to data privacy, security, and compliance, catering to a diverse array of organizations across Asia.

The initiative reflects the increasing mainstream adoption of generative AI and the imperative for companies to adhere to regional data handling standards.

Developers utilizing the API can now select India as their data storage location when initiating new projects, allowing for enhanced local data residency.

Customers of the ChatGPT API Platform can activate local data residency by creating a new project and choosing India as their storage option.

After CEO Sam Altman's visit, OpenAI executives continued to engage with Indian government officials and technology policy advocacy groups to outline the company's offerings and future plans in India.

In addition to India, OpenAI has introduced similar data residency options for users in Japan, Singapore, and South Korea, demonstrating its responsiveness to global regulatory demands.

India has emerged as OpenAI's second-largest market, with user numbers tripling in 2024, a fact highlighted by CEO Sam Altman during his visit to the country.

In February 2025, OpenAI began setting up data center operations in India to accommodate its growing user base and the increasing demand for its AI tools.

This strategic move follows discussions between OpenAI executives and Indian government officials, underscoring India's importance in OpenAI's global strategy.

OpenAI has been preparing for this transition since early 2024, with reports indicating that data center operations have been established in India to support the rising demand for its AI services.

The data residency program aims to address concerns regarding data sovereignty and security, ultimately building trust among institutional customers in India.