Stargate Project: OpenAI, Oracle & SoftBank to Build 5 AI Data Centers

On September 23, 2025, OpenAI, Oracle, and SoftBank announced plans to build five new AI data centers in the United States. This is part of the $500 billion Stargate Project, started in January 2025. The goal is to reach 10 gigawatts of AI computing power by the end of 2025. The new centers will be in Shackelford County, Texas; Doña Ana County, New Mexico; Lordstown, Ohio; Milam County, Texas; and one secret location in the Midwest. These centers will add almost 7 gigawatts, keeping the project ahead of schedule. The plan will create over 25,000 jobs and shows how important AI is for technology around the world.

The Stargate Project is a team effort by OpenAI, Oracle, and SoftBank, with help from the U.S. government. It aims to make the United States a leader in AI. As the project grows, it will affect research and the use of AI in healthcare, defense, and business.

Background of the Stargate Project

The Stargate Project officially began on January 21, 2025, announced by President Donald Trump at the White House. It is a joint effort by OpenAI, Oracle, and SoftBank, with help from investment firm MGX. The plan is to invest up to $500 billion in AI infrastructure in the United States by 2029. The main goal is to reach 10 gigawatts of AI computing power, similar to the energy from ten nuclear reactors.

The project was created to meet the growing need for AI, especially in defense, healthcare, and business. By building advanced data centers, the United States aims to stay a leader in the global AI race. It also strengthens national security and shows the country’s commitment to advanced technology.

Key Players and Their Roles

OpenAI: OpenAI leads the Stargate Project. It develops and runs the AI models and technology used in the data centers. The company uses its machine learning skills to create new innovations. OpenAI is also working with Nvidia to get up to $100 billion in computer chips, which are essential for the project’s success.

Oracle: Oracle handles the cloud infrastructure for the data centers. It is building eight large halls in Abilene, Texas, that can hold over 400,000 GPUs. This setup is needed to run and process the large AI models created by OpenAI.

SoftBank: SoftBank provides financial backing for the project and plays a significant role in strategic planning. The company’s subsidiary, SB Energy, is responsible for constructing data centers in Lordstown, Ohio, and Milam County, Texas. SoftBank’s involvement ensures that the project has the necessary resources and support to meet its ambitious goals.

Technical Details of the AI Data Centers

The data centers being developed under the Stargate Project are designed to handle the immense computational demands of advanced AI models. Each facility is equipped with state-of-the-art hardware, including high-performance GPUs and TPUs, to facilitate efficient processing of AI workloads. The infrastructure also incorporates advanced cooling solutions to manage the significant heat generated by the equipment.

Energy efficiency is a key consideration in the design of these data centers. The facilities are being constructed with sustainable practices in mind, aiming to minimize their environmental impact. This includes the use of renewable energy sources and energy-efficient technologies to power the operations.

Strategic Importance

The Stargate Project is very important for several reasons. First, it helps the United States stay a leader in global AI and technology.

Second, it supports national security by giving the infrastructure needed for advanced AI in defense and other critical areas. Finally, the project will boost the economy by creating thousands of jobs and encouraging growth in many industries.

Financial & Investment Perspective

The financial backing for the Stargate Project comes from a combination of equity investments and debt financing. OpenAI is utilizing revenue from its flagship products, such as ChatGPT, to fund the initiative.

Additionally, the company is engaging in equity sales and securing loans to meet the project’s financial requirements. A significant portion of the investment, approximately two-thirds per gigawatt, is allocated to acquiring chips and networking equipment, which are essential for the data centers’ operations.

Challenges and Risks

Despite its ambitious goals, the Stargate Project faces several challenges and risks. Regulatory and security concerns are paramount, as the development of AI infrastructure involves handling sensitive data and technologies. Geopolitical tensions, particularly with China, may also impact the project’s progress and objectives. 

Additionally, the technical complexity of building and maintaining large-scale data centers presents operational challenges. Financial risks include ensuring a return on investment and managing the substantial costs associated with the project.

Future Prospects and Conclusion

The Stargate Project will play a key role in the future of artificial intelligence. When the data centers start running, they will support new AI applications.

The project could bring major improvements in healthcare, defense, and business solutions. Although there are challenges, the teamwork of OpenAI, Oracle, and SoftBank, with U.S. government support, makes the Stargate Project a strong foundation for AI infrastructure.

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Disclaimer:

The above information is based on current market data, which is subject to change, and does not constitute financial advice. Always do your research.