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OpenAI, Oracle, and SoftBank have announced five new data centers as part of their $500 billion Stargate initiative. This privately funded project aims to expand AI infrastructure across the United States. The move highlights the growing competition to secure the computing power needed for large-scale AI models such as ChatGPT and Copilot.
The new facilities, planned for Texas, New Mexico, Ohio, and an undisclosed Midwestern state, will increase Stargate’s projected capacity to nearly 7 gigawatts, up from its original base. This expansion moves the project closer to its 10-gigawatt goal. With data center projects already underway with CoreWeave and Oracle, the size of the initiative shows both the growing computing needs of generative AI and the geopolitical urgency around developing this technology.
The announcement follows a high-profile meeting hosted by President Trump in January, signalling federal backing for private AI infrastructure as a national priority.
Debt financing will reportedly be used to lease GPUs—critical components for model training—from suppliers like Nvidia, which announced a $100bn investment in OpenAI this week. Microsoft, a longstanding partner of OpenAI, is also deeply embedded in these infrastructure efforts.
The Stargate build-out represents a pivotal escalation in the centralisation of AI computing power. As the digital backbone of global services increasingly relies on hyperscale infrastructure, questions around decentralisation, sustainability, and regulatory oversight are bound to grow louder.
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