Silicon Valley's AI Giants Are Betting Big on Texas Data Centers

OpenAI is pushing full steam ahead with its massive infrastructure expansion, announcing plans to build five new data centers across the United States as part of the Stargate initiative. The ambitious project, developed in partnership with tech powerhouses Oracle and SoftBank, aims to create nearly 7 gigawatts of computing capacity, equivalent to the power output of seven large nuclear reactors.
The data center locations span strategic regions including Shackelford County and Milam County in Texas, Doña Ana County in New Mexico, Lordstown in Ohio, and an undisclosed Midwestern location. OpenAI CEO Sam Altman is positioning this move as critical for maintaining American technological leadership, emphasizing that the “innovative spirit” of states like Texas provides a model for rapid infrastructure development.
Beyond just building data centers, the project promises significant economic impact. OpenAI claims the initiative will generate over 25,000 onsite jobs, though experts note that long-term employment numbers typically decrease after initial construction. The $500 billion commitment between OpenAI, SoftBank, Oracle, and MGX represents a strategic bet on AI infrastructure as a key competitive advantage.
The Stargate project isn’t just about domestic expansion. OpenAI has already announced international data center initiatives in the UK and UAE, signaling a global strategy to secure computational resources. This comes amid increasing geopolitical tension, with the company framing the infrastructure development as crucial in maintaining technological superiority against international competitors.
Interestingly, the project has attracted support from across the political spectrum. Senator Ted Cruz championed the initiative, arguing for a “light-touch regulatory approach” to maintain America’s technological edge. However, some experts like Jonathan Koomey from UC Berkeley caution that massive infrastructure investment doesn’t guarantee technological success, pointing to examples of innovative AI models developed with limited computational resources.
As the race for AI supremacy intensifies, OpenAI’s Stargate project represents a bold, infrastructure-driven approach to maintaining technological leadership in an increasingly complex global landscape.
AUTHOR: pw
SOURCE: Wired