The Stargate Project, a joint venture between OpenAI, Oracle, and SoftBank, aims to establish a series of state-of-the-art data centers dedicated to advancing artificial intelligence in the United States. OpenAI says that it will team up with Japanese conglomerate SoftBank and Oracle, among others, to build multiple data centers for AI in the U.S. The joint venture will begin with a large data center project in Texas, with plans to expand to other states. The companies expect to initially commit $100 billion to Stargate, with plans to pour up to $500 billion into the venture over the next four years. The project promises to create hundreds of thousands of jobs and secure American leadership in AI.
The first data center will be located in Abilene, Texas, where it is expected to reach nearly a gigawatt of electricity by mid-2026. (A gigawatt is enough to power roughly 750,000 small homes.) This site will serve as Stargate’s first location, with Stargate potentially scaling up to 20 data center installations across the country by 2029. OpenAI, Oracle, and SoftBank aim for this initiative to drive U.S. re-industrialization and strengthen national security. The companies will work closely with Oracle, Nvidia, and OpenAI to build and operate the computing systems that will power the project.
“The Stargate Project is a new company which intends to build new AI infrastructure for OpenAI in the United States,” OpenAI, Oracle, and SoftBank stated in a joint press release. Masayoshi Son, SoftBank’s CEO, will serve as the chairman of Stargate, and Sam Altman, CEO of OpenAI, will oversee its operations. SoftBank and OpenAI are the lead partners, with SoftBank handling financial responsibilities and OpenAI focusing on operations.
The project has also attracted significant investments, with SoftBank committing $100 billion to the United States over the next four years. In addition to this, MGX, a Middle East AI fund, is backing Stargate and marks its first public investment deal with OpenAI. Goldman Sachs has projected that AI will represent about 19% of data center power demand by 2028, highlighting the growing need for advanced infrastructure to support AI technologies.
“SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility,” the companies stated.
Addressing Environmental and Regulatory Challenges
The Stargate Project is set to play a crucial role in advancing U.S. infrastructure, particularly as AI systems require enormous server banks to develop and run at scale. The project’s large-scale data centers are well-positioned to meet this demand, setting a new standard for AI capability and infrastructure development. However, massive data center projects have vocal critics, who argue that such centers tend to create fewer jobs than promised and may have significant environmental impacts. Data centers are typically water-hungry, placing a strain on regions with insufficient water resources, and their high power requirements have forced some utilities to lean heavily on fossil fuels.
Microsoft has also joined Stargate as a tech partner, further cementing its involvement in AI infrastructure development. Microsoft has already committed to spending $80 billion on AI data centers and plans to launch a smaller-scale data center for OpenAI around 2026. This collaboration among major industry players like Oracle, Nvidia, and Microsoft signals a strong alliance to harness AI’s full potential.
“The thing I really deeply agree with [President Trump] on is, it is wild how difficult it has become to build things in the United States,” said OpenAI CEO Sam Altman in a recent interview. He called for clearing what he perceives as bureaucratic barriers that hinder the building of essential infrastructure like data centers.
According to a McKinsey report, capital spending on procurement and installation of mechanical and electrical systems for data centers is expected to surpass $250 billion in the next five years. This reflects the rapidly growing demand for AI-powered infrastructure.
As part of its ongoing efforts to develop AI systems, OpenAI continues to explore partnerships that will enable the creation of new technologies and infrastructure to meet the increasing global demand for AI. The Stargate Project represents a significant step toward achieving these goals and advancing the United States’ position as a leader in AI technology.
Author’s Opinion
The Stargate Project represents a significant leap forward in the pursuit of integrating advanced artificial intelligence within national infrastructure. While the economic and technological benefits appear promising, the environmental and social implications demand careful consideration and transparent management. This project could potentially set a precedent for future large-scale technology implementations, but it also poses a test of corporate and governmental responsibility in balancing progress with sustainability.
