OpenAI Announces Five New Data Centers as Part of Massive “Stargate” Expansion
Key Points
- OpenAI plans five new data center sites in Texas, New Mexico, Ohio and an undisclosed Midwest location.
- Partners Oracle and SoftBank are collaborating on the expansion.
- The effort is part of the "Stargate" project targeting up to 10 gigawatts of AI compute power.
- Current capacity is moving toward nearly 7 gigawatts with over $400 billion invested in the next three years.
- Existing facilities include a data center in Abilene, Texas, and projects with CoreWeave.
- CEO Sam Altman emphasizes that massive compute is essential for AI's promise.
- Altman's blog envisions a "factory" producing a gigawatt of AI infrastructure weekly.
- Communities are pushing back against data‑center growth due to land, water and power concerns.
- Ziff Davis has sued OpenAI over alleged copyright infringement in AI training data.
OpenAI disclosed plans to stand up five new data center sites across Texas, New Mexico, Ohio and a yet‑to‑be‑announced Midwest location, partnering with Oracle and SoftBank. The effort is part of the so‑called Stargate project, which aims to deliver up to 10 gigawatts of AI compute power and involves billions of dollars in investment. Existing facilities include a site in Abilene, Texas, and collaborations with CoreWeave. CEO Sam Altman emphasized that expanding compute is essential to AI’s promise, while noting challenges such as financing, permitting and community opposition. A lawsuit from Ziff Davis over alleged copyright infringement is also highlighted.
Expansion Plans and Partnerships
OpenAI announced a rollout of five new data center sites spanning Texas, New Mexico, Ohio and an undisclosed Midwest location. The company is working alongside cloud provider Oracle and Japanese investment firm SoftBank to bring these facilities online. The announcement builds on OpenAI’s existing Abilene, Texas data center and ongoing projects with computing partner CoreWeave.
Stargate Project Scope
The new sites are part of OpenAI’s broader "Stargate" initiative, which is designed to scale the organization’s AI computing capacity dramatically. Stargate is projected to reach a total of 10 gigawatts of compute power and represent an investment of $500 billion. The recent announcements push the project toward nearly 7 gigawatts of capacity and more than $400 billion in the next three years.
Leadership Perspective
CEO Sam Altman stated, "AI can only fulfill its promise if we build the compute to power it," underscoring the belief that massive infrastructure is a prerequisite for future AI breakthroughs. In a separate blog post, Altman described a vision of a "factory that can produce a gigawatt of new AI infrastructure every week," highlighting the aggressive growth targets the company is setting.
Industry Context and Community Response
Data centers are becoming critical assets for the AI industry, requiring large tracts of land, substantial water for cooling, and significant electricity consumption. While the expansion promises advanced AI capabilities, it also provokes resistance from some communities that have implemented bans or strict curbs on data‑center development.
Legal and Regulatory Challenges
OpenAI faces a lawsuit from Ziff Davis, the parent company of CNET, alleging that the AI firm infringed on copyrighted material in training and operating its systems. Additionally, the company must navigate financing uncertainties and complex permitting processes that can delay or limit new construction.