OpenAI and partners expand plans for Stargate US data centers

In short: OpenAI and its partners are quietly lining up sites and power for a large US data center build-out called Stargate, starting in Texas and likely spreading to many states.

What's going on

OpenAI, Oracle, SoftBank, and the Emirati fund MGX have formed a new company, Stargate LLC. The group says it intends to invest up to $500 billion over four years to build AI infrastructure for OpenAI in the United States. They have said $100 billion is committed as initial funding.

This project is mainly about building huge data centers, which are like warehouse-sized buildings full of computers. These computers provide the processing power needed to train and run advanced AI systems, similar to how a power plant supplies electricity to a city.

Reporting suggests the planning has involved private meetings and hard-to-see negotiations. A leaked memo described a closed-door briefing with Georgia Governor Brian Kemp and Georgia Power about a possible major expansion, with details like exact sites and costs treated as confidential. Stargate was also announced publicly at the White House, and reports say parts of the deal were being discussed before the announcement.

The building plan also appears to be growing. The first site is reported to be under construction in Texas, including a large campus planned near Abilene. OpenAI has said work is underway starting in Texas and that it is evaluating other sites across the country, with some reports describing a goal of around 20 US data centers.

What to watch

Watch for which states win these projects, and how local power grids, water use, and permitting are handled. Data centers can bring jobs and tax revenue, but they also demand a lot of electricity and new lines and substations. Public details may arrive late, since many early talks happen behind closed doors.

Source: NYTimes