OpenAI, Oracle, and SoftBank to Build New AI Data Centers in US for $400 Billion

OpenAI, in collaboration with Oracle and SoftBank, has announced plans to construct five new artificial intelligence (AI) data centers across the United States as part of the expansive Stargate project. This initiative, unveiled on September 23, 2025, aims to bolster the nation's AI infrastructure with a total investment exceeding $400 billion over the next three years, bringing the project closer to its $500 billion goal ahead of schedule.

The new data centers will be located in Shackelford County, Texas; Doña Ana County, New Mexico; Lordstown, Ohio; Milam County, Texas; and an undisclosed site in the Midwest. These facilities are expected to add nearly 7 gigawatts of planned capacity, advancing the Stargate project's objective of achieving a 10-gigawatt capacity by the end of 2025. The expansion is anticipated to create over 25,000 onsite jobs and tens of thousands of additional positions across the country.

Launched in January 2025, the Stargate project is a collaborative effort between OpenAI, SoftBank, and Oracle, with an initial commitment of $500 billion over four years to build AI infrastructure in the United States. The initiative aims to secure American leadership in AI, create hundreds of thousands of jobs, and generate significant economic benefits.

In July 2025, OpenAI and Oracle entered an agreement to develop up to 4.5 gigawatts of additional Stargate capacity, representing a partnership exceeding $300 billion over the next five years. This collaboration underscores the growing emphasis on AI infrastructure investment by tech companies to support services like ChatGPT and Copilot.

Additionally, Nvidia announced plans to invest up to $100 billion in OpenAI, beginning with an initial $10 billion commitment to support the development of one gigawatt of data center capacity using its next-generation Vera Rubin AI chips. This partnership highlights the massive demand for computing power spurred by AI advancements.

The scale of the Stargate project raises environmental concerns, particularly regarding energy consumption and resource utilization. For instance, the flagship data center in Abilene, Texas, utilizes a closed-loop cooling system to minimize water usage and has an on-site gas-fired power plant for backup energy. Local residents have expressed concerns over the facility's impact on scarce water and energy resources.

The Stargate project's expansion signifies a transformative period in the AI sector, indicating a significant shift toward AI integration across industries. The substantial investment and job creation are expected to stimulate local economies and contribute to the reindustrialization of the United States. However, the environmental impact and resource allocation require careful consideration to balance technological advancement with sustainability.

The expansion of the Stargate project marks a significant milestone in AI infrastructure development, with far-reaching economic, environmental, and societal implications. As the project progresses, it will be crucial to monitor its impact on local communities, resource management, and the broader technological landscape.