OpenAI to Store ChatGPT Enterprise and API User Data Locally in India

OpenAI has announced that it will now store the data of Indian users of ChatGPT Enterprise, ChatGPT Edu, and the OpenAI API Platform locally within India. This strategic move is aimed at helping businesses comply with local data sovereignty laws, which require user data to be housed within the country. It is part of OpenAI’s broader initiative to strengthen data privacy and meet regulatory requirements in its major markets.

According to OpenAI, the new data residency program means that all user interactions—including prompts, uploaded files, and content across various formats like text, images, and vision—within the ChatGPT Enterprise and Edu workspaces will now be stored in India. For API Platform users, those eligible can enable this data residency feature by creating a new project on their API dashboard and selecting India as the storage region. OpenAI clarified that storage for the API Platform will be physically located in the selected country, reinforcing its commitment to data localization.

This move follows OpenAI’s efforts to expand its infrastructure within India. In February 2024, Business Standard had reported that OpenAI had begun working on setting up data center operations in India to meet the increasing demand from Indian users and handle the growing volume of AI-based applications. India has rapidly emerged as OpenAI's second-largest market, and its user base in the country tripled over the course of 2024. Sam Altman, CEO of OpenAI, highlighted the country’s dynamic role in AI adoption during his visit to India in early February. He praised the breadth of AI applications being developed in India—from hardware like chips to software models—and emphasized that India should continue to engage deeply with the AI revolution.

Following Altman's visit, OpenAI executives held two significant meetings in India. The first was with senior officials from the Prime Minister’s Office, the US Embassy in India, the Ministry of Finance, and the Ministry of Home Affairs. The second was a closed-door meeting with technology policy advocacy groups, organized by The Quantum Hub (TQH). These meetings were aimed at aligning OpenAI’s products and data practices with Indian policy frameworks. Vice President of Engineering Srinivas Narayanan and other executives reportedly discussed the company’s offerings and India’s critical role in OpenAI’s global strategy.

In addition to India, OpenAI announced the expansion of its data residency program to other countries in Asia, including Japan, Singapore, and South Korea. This move follows earlier announcements of similar programs in Europe, reflecting OpenAI’s global focus on secure, compliant data handling.

In a blog post, OpenAI emphasized that the data residency initiative complements its strong privacy, security, and compliance infrastructure. The company currently supports a broad range of organizations across Asia, from start-ups to major corporations and educational institutions. Notable partners include Kakao, SoftBank, Grab, and Singapore Airlines. These efforts are part of OpenAI’s strategy to ensure its products remain both useful and compliant in a global regulatory landscape, offering confidence to users and businesses relying on its AI tools for innovation.