:max_bytes(150000):strip_icc()/GettyImages-2194581989-be5b5a7ba420449f8f7b161cfcddca01.jpg "Here’s Where OpenAI, Oracle and SoftBank Are Building 5 New Data Centers")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2194581989-be5b5a7ba420449f8f7b161cfcddca01.jpg)
Key Takeaways
- OpenAI, Oracle and SoftBank announced plans to open five new artificial intelligence data centers as part of the government’s $500 billion Stargate program.
- Two of the centers will be in Texas, and there will be one each in New Mexico and Ohio. The location of the final site in the Midwest has yet to be named.
More data centers to power artificial intelligence are coming to the U.S. as part of the government’s half-trillion-dollar Stargate AI infrastructure plan announced in January.
AI giant OpenAI, cloud software maker Oracle (ORCL), and Japanese tech firm SoftBank are expanding their partnership in Stargate, announcing plans to build five new AI data centers.
OpenAI said that it and Oracle will open sites in Shackelford County, Texas, and Doña Ana County, N.M., as well as a yet-to-be-named location in the Midwest. In addition, OpenAI and Softbank will work together on opening centers in Lordstown, Ohio, and Milam County, Texas.
Why This News Is Significant
New data centers will enable the trio of companies to ramp up the computing power needed to train and run advanced AI. From an investor standpoint, it signals massive capital investment and long-term demand for energy, hardware and cloud infrastructure tied to AI growth.
OpenAI noted that with these new centers, along with its current one in Abilene, Texas, and ongoing projects with cloud computing provider CoreWeave (CRWV), Stargate is “on a clear path to securing the full $500 billion, 10-gigawatt commitment we announced in January by the end of 2025, ahead of schedule.”
CEO Sam Altman said that AI can only fulfill its promise “if we build the compute to power it.” He added that the companies are “making historic progress” on that in their efforts with Stargate.
