OpenAI, Oracle, and SoftBank Push Forward With $500 Billion Stargate Data Center Expansion

September 24, 2025

The race to build the world’s largest artificial intelligence infrastructure has entered a new phase. OpenAI, Oracle, and SoftBank announced plans to construct five additional high-capacity data centers in the United States, advancing their ambitious $500 billion “Stargate” project.

Expanding America’s AI Footprint

The new sites will be built in Texas, New Mexico, and Ohio, along with another undisclosed Midwest location. Together with the flagship Abilene, Texas hub, the expansion will push Stargate’s expected capacity close to 7 gigawatts—well on the way toward the ultimate target of 10 gigawatts.

Three of the new centers will be developed in partnership with Oracle, while two will be constructed with SoftBank, which is also leveraging its renewable energy ventures to power the facilities.

Economic and Strategic Impact

The initiative is expected to generate more than 25,000 direct jobs during construction and operations, plus thousands more across supply chains. Local economies, particularly in rural counties hosting the centers, are preparing for a surge in investment and infrastructure upgrades.

Beyond jobs, the data centers are set to strengthen U.S. competitiveness in the global AI arms race. With rapidly growing demand for generative AI, advanced research, and enterprise applications, the scale of computing required is unprecedented. Stargate’s backers argue that this infrastructure will help ensure that innovation remains anchored in the United States.

Challenges Ahead

Despite the optimism, major challenges loom. The enormous power requirements of the facilities have sparked concerns over energy sustainability and water use in regions already under environmental stress. Engineers are also racing to secure enough advanced chips and servers to fill the centers, as global supply chains remain tight.

Financing is another consideration. OpenAI and its partners are expected to rely on a mix of debt, private equity, and energy-backed deals to sustain the multiyear buildout.

Looking Forward

If successful, the Stargate project could redefine global computing capacity and set new standards for AI infrastructure. But its sheer scale also makes it a test of whether cutting-edge technology can expand responsibly, balancing economic opportunity with environmental impact.

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