OpenAI, Oracle and SoftBank Announce Five New AI Data Centres for $500 Billion Stargate Project
OpenAI, Oracle and SoftBank revealed plans on Tuesday to build five new artificial intelligence data centres in the United States as part of the $500 billion Stargate project. The initiative, first launched in January by President Donald Trump alongside leading tech executives, aims to create one of the world’s largest AI infrastructure networks.
Expanding AI Infrastructure Across the US
OpenAI, the maker of ChatGPT, said it will build three new data centres with Oracle in Shackelford County, Texas, Dona Ana County, New Mexico, and an undisclosed location in the Midwest. Two additional sites will be developed in Lordstown, Ohio and Milam County, Texas in partnership with Japan’s SoftBank and a SoftBank affiliate.
Together with Oracle’s existing Abilene expansion and ongoing projects with CoreWeave, the new facilities will raise Stargate’s total data centre capacity to nearly 7 gigawatts. This represents more than $400 billion in investment over the next three years, edging closer to the project’s goal of 10 gigawatts in capacity.
Massive Investment and Job Creation
The announcement comes with a major boost for employment. According to OpenAI, the new facilities are expected to create around 25,000 onsite jobs. CEO Sam Altman said building large-scale computing power is essential to unlocking AI’s full potential.
“AI can only fulfil its promise if we build the compute to power it,” Altman noted in a statement.
The Stargate project reflects the huge sums now being spent by tech companies to keep pace with rising demand for generative AI services such as ChatGPT and Microsoft’s Copilot.
Growing Competition in the AI Race
The announcement follows Nvidia’s move on Monday to invest up to $100 billion in OpenAI while also supplying advanced chips for its data centres. OpenAI and its partners plan to use debt financing to lease chips, according to sources familiar with the matter.
With Microsoft, Oracle, Nvidia and SoftBank heavily backing AI infrastructure, the race to dominate the sector is accelerating. The technology has become a national priority under Trump, not only for its economic potential but also for its role in sensitive areas such as defence.
As China increases its own AI investments, the US is seeking to maintain a decisive lead through projects like Stargate, which bring together public and private resources on an unprecedented scale.
with inputs from Reuters
