In a major escalation of AI infrastructure investment, OpenAI, Oracle, and SoftBank today announced five new U.S. data centre sites as part of their ambitious Stargate initiative, which aims to deploy up to $500 billion to build next-generation AI capacity.
The new facilities will be located in Shackelford County, Texas; Dona Ana County, New Mexico; Milam County, Texas; Lordstown, Ohio; and one undisclosed site in the Midwest.
This expansion brings the project’s planned capacity to nearly 7 gigawatts — just short of its 10 GW target — with over $400 billion in committed investment so far.
Oracle is expanding operations at its Abilene, Texas campus, while SoftBank is stepping in to co-lead several new sites. Meanwhile, Nvidia has committed to support the project with up to $100 billion in chip investments.
Why This Move Is Big
1. Infrastructure at AI’s Core
Stargate seeks to build the raw computational backbone for generative models, real-time AI services, and large-scale training. The sheer scale — gigawatts of compute power — places it among the largest infrastructure plays in history.
OpenAI CEO Sam Altman framed the buildout as essential: “AI can only fulfill its promise if we build the compute to power it.” With the pace of AI demand rising, having capacity ahead of need is a strategic edge.
2. Jobs, Politics & Local Impact
The rollout is projected to bring 25,000 onsite jobs during construction across these locations. That said, data centers demand far fewer staff once online, so the long-term staffing uplift will be modest.
Many local and federal leaders are backing the project politically, citing technological competition (especially with China) as a justification for fast expansion. On the flip side, some communities may raise concerns over energy, water, and environmental strain in the coming months.
3. Funding, Partners & Strategy
Stargate is no small bet. To help finance it, OpenAI and its partners plan to lease computing chips and use debt financing.
Oracle and OpenAI recently agreed to a $30 billion computing lease agreement for 4.5 GW, strengthening their mutual commitment.
In previous phases, OpenAI and SoftBank each pledged $19 billion to the project — reinforcing a shared financial stake in the infrastructure roadmap.
4. Strategic Signals & Risks
- U.S. tech leadership race: Stargate is intended not just as infrastructure, but as a geopolitical statement: the U.S. must own the AI stack. With China advancing fast in data center and computing investments, this project aims to secure dominance by scale and capacity.
- Energy & resource bottlenecks: Power, cooling, water usage — those are rising constraints for massive data centers. As operations expand, the project will need to manage grid impact, sustainability, and local resource dynamics.
- Complex accounting & execution risk: Building across multiple states and partners, executing billions of dollars in hardware and construction, and coordinating leases and capital paths adds operational complexity. Any delays in chip supply, permitting, or regulatory alignment could ripple across the project.
What to Watch From Here
– How quickly these new sites come online, and whether full capacity (10 GW) is reached on schedule.
– Decisions around grid capacity, power sourcing (renewables vs fossil), and environmental impact at local level.
– Competitive moves by China, EU, or other nations in AI infrastructure investment.
– Commercial usage: how many AI services, cloud customers, or defense contracts depending on this “backbone.”
– Financial health of the partners (Oracle, SoftBank) and their ability to sustain such large capital commitments.
Stargate isn’t just another cloud or data centre expansion, it’s a defining infrastructure bet for the AI era. With fresh sites, deep pockets, and powerful political backing, its success could shape where the AI world’s compute backbone lives — and who controls it.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Nvidia Stakes $5 Billion in Intel: A Strategic Revival for the Chipmaker
Powell Frames Cut as “Risk Management” Amid Weakening Jobs, Tariff Risks
