• OpenAI, SoftBank, and Oracle are launching The Stargate Project, starting with a $100 billion investment to build data centers in the U.S., scaling up to $500 billion over four years.
  • The first data center, located in Abilene, Texas, is expected to require nearly a gigawatt of electricity by 2026.

OpenAI, SoftBank, and Oracle announced a $500 billion initiative to build advanced AI data centers in the U.S. as part of a new joint venture, The Stargate Project.

The effort will kick off with a large data center in Abilene, Texas, with plans to expand nationwide. The project aims to create thousands of jobs and bolster American AI leadership.

The companies initially plan to invest $100 billion in Stargate, scaling up to $500 billion over four years.

“The Stargate Project is a new company which intends to [build] new AI infrastructure for OpenAI in the United States,” the trio said in a joint statement.

The initiative also seeks to support national security and the re-industrialization of the U.S.

Microsoft, Nvidia, Arm, and Middle East AI fund MGX are collaborating on Stargate. MGX’s involvement follows its initial investment in OpenAI. SoftBank and OpenAI lead Stargate, with SoftBank overseeing finances and OpenAI handling operations. Masayoshi Son, SoftBank’s CEO, will chair the venture.

The Abilene facility, projected to require nearly a gigawatt of electricity by 2026, marks the venture’s starting point. OpenAI is reportedly partnering with Broadcom and TSMC to develop custom AI chips that may be housed in these facilities. The Stargate team is also evaluating potential national sites for future campuses.

The announcement was made at the White House, where President Donald Trump praised the project’s commitment to infrastructure investment. This partnership underscores growing concerns about U.S. data center capacity, with AI companies like OpenAI citing limited computing as a significant challenge.

Despite criticisms of environmental and job creation impacts, investments in data centers are expected to surge, with McKinsey projecting over $250 billion in spending on infrastructure in the next five years.

Edited by Harshajit Sarmah