OpenAI is embarking on an ambitious $100 billion initiative, known as Stargate, to establish large-scale data center campuses across 16 states, aiming to enhance the U.S. AI infrastructure.

Texas has been chosen as the primary site for this project, with construction already underway in Abilene.

The Stargate initiative plans to set up between five to ten data center campuses, depending on the power generation capacity available at each location.

Concerns have been raised about the potential impact of these data centers on local utilities, particularly regarding their ability to provide clean power and the risk of increased utility rates.

While OpenAI's proposal does not explicitly commit to renewable energy sources, it emphasizes the importance of effective carbon emissions and water usage management by electricity providers.

The urgency of the Stargate project has been amplified by the rapid advancements in AI technology in China, particularly with the launch of the DeepSeek R1 model, which has prompted calls for the U.S. to lead in establishing a global open-source AI standard.

Elon Musk, a notable critic of OpenAI, has publicly questioned the financial viability of the Stargate project, raising skepticism about its investments.

Project Stargate represents a critical effort by the U.S. to maintain its leadership in AI technology amidst increasing global competition.

OpenAI has issued requests for proposals from landowners and service providers, focusing on locations with essential infrastructure, and is currently exploring potential sites in states like Oregon, Pennsylvania, and Wisconsin.

Each data center campus is expected to generate around one gigawatt of power, highlighting the substantial energy requirements necessary for AI operations.

Previously reliant on Microsoft for its computing needs, OpenAI is now pursuing independent data center development, marking a significant shift in its operational strategy.

Oregon is already a hub for major tech companies, hosting significant data centers from firms like Apple, Meta, Google, and Amazon, attracted by tax breaks and affordable energy.