OpenAI and partners add 5 new data centers to $500B Stargate project

OpenAI, Oracle, and SoftBank announced plans to build five new AI data centers across the United States as part of their $500 billion Stargate project, expanding the initiative launched by President Trump in January. The new facilities will bring the project’s total data center capacity to nearly 7 gigawatts with over $400 billion in investment over the next three years, positioning the partnership to capture a significant portion of the rapidly expanding AI infrastructure market.

What you should know: The five new data centers will be strategically distributed across multiple states to support the growing demand for AI computing power.

• Three sites will be built jointly by OpenAI and Oracle in Shackelford County, Texas, Dona Ana County, New Mexico, and an undisclosed Midwest location.
• Two additional facilities will be constructed in Lordstown, Ohio and Milam County, Texas through a partnership between OpenAI, SoftBank, and a SoftBank affiliate.
• The expansion is expected to create 25,000 onsite jobs across all locations.

The big picture: The Stargate project represents one of the largest private-sector AI infrastructure investments in U.S. history, targeting 10 gigawatts of total data center capacity.

• The initiative combines the new sites with an existing Oracle-OpenAI expansion in Abilene, Texas, and ongoing projects with CoreWeave to reach nearly 7 gigawatts of capacity.
• OpenAI and partners plan to use debt financing to lease chips for the project, indicating a capital-efficient approach to scaling AI infrastructure.

Why this matters: The massive infrastructure buildout reflects the critical importance of compute power in advancing AI capabilities and maintaining U.S. technological leadership.

• “AI can only fulfill its promise if we build the compute to power it,” OpenAI CEO Sam Altman said in a statement.
• AI has become a top priority for Trump, particularly given China’s efforts to catch up in the technology and AI’s growing role in sensitive sectors like defense.

Strategic partnerships: The announcement follows Nvidia’s commitment to invest up to $100 billion in OpenAI while supplying data center chips for the project.

• OpenAI and its backer Microsoft are among tech giants pouring billions into data centers to power generative AI services like ChatGPT and Copilot.
• The partnership structure allows companies to share the massive capital requirements while leveraging each partner’s specialized expertise in AI development, cloud infrastructure, and global investment.