OpenAI Explores Options for New Stargate Data Centers in 16 U.S. States

The Generative Artificial Intelligence company, OpenAI, is evaluating the possibility of developing data centers in more than a dozen states across the U.S. as part of its ambitious Stargate project, which aims to expand its technological infrastructure to support its growing computational demand.

Massive expansion with million-dollar investments

According to CNBC, OpenAI recently sent a request for proposals (RFP) to various states interested in hosting these data centers. The company aims to develop between five and ten campuses, each capable of supporting at least 1GW of power, making them some of the largest data centers in the world.

Chris Lehane, OpenAI’s Vice President of Global Policy, highlighted the scale of the project and its impact on the local economy:

“A project of this magnitude not only represents an opportunity to reindustrialize parts of the country but also to revitalize the American dream in this era of artificial intelligence.”

The states in OpenAI’s sights

The 16 states currently being considered by OpenAI are:

  • Arizona
  • California
  • Florida
  • Louisiana
  • Maryland
  • Nevada
  • New York
  • Ohio
  • Oregon
  • Pennsylvania
  • Utah
  • Texas
  • Virginia
  • Washington
  • Wisconsin
  • West Virginia

The company has already begun evaluation visits in Pennsylvania, Oregon, and Wisconsin, according to Sarah Friar, Chief Financial Officer of OpenAI.

A project with global backing

Stargate was officially announced in early 2024 and has received backing from major names such as Oracle, SoftBank, and Abu Dhabi’s MGX. This project is estimated to reach a total investment of over $500 billion over the coming years.

The first Stargate campus is already under construction in Abilene, Texas, in collaboration with Oracle and the company Crusoe, which is developing the project on land owned by Lancium.

Additionally, OpenAI continues to explore options in Texas, including a potential 250-acre site near Colorado City. SoftBank, one of the project’s investors, recently acquired rights to a 300MW campus in Barber Lake through its subsidiary Star Beacon LLC.

The role of Microsoft in the equation

Although Microsoft was for a long time OpenAI’s exclusive cloud provider, the relationship has evolved. While Microsoft remains a key shareholder, it is not a partner in Stargate, although it retains the right of first option to provide cloud infrastructure to OpenAI.

A future dominated by AI and data centers

The expansion of OpenAI with Stargate reflects the growing role of large-scale data centers in the future of artificial intelligence. The company seeks to secure access to energy and strategic land to build infrastructures that allow for the development of increasingly advanced models.

As OpenAI advances with its plans, the technology sector will be watching closely to see how these massive campuses will redefine the landscape of data centers and cloud computing in the era of AI.

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