OpenAI is considering building AI data center campuses in 16 U.S. states as part of President Donald Trump’s Stargate initiative, the company announced Thursday. The move aims to strengthen U.S. artificial intelligence infrastructure and compete with China’s rapid AI advancements.
Massive AI Investment Underway
OpenAI executives confirmed they sent out a request for proposals (RFP) to the selected states less than a week ago. The initial Stargate partnership includes Oracle, SoftBank, Microsoft, Nvidia, and Arm, with an investment of $100 billion to start and up to $500 billion over the next four years.
“A project of this size represents an opportunity to both re-industrialize parts of the country, but also to help revitalize where the American Dream is going to go in this intelligence age,” said Chris Lehane, OpenAI’s VP of global policy.
States in Consideration
The 16 states being evaluated for new AI data centers are:
- Arizona, California, Florida, Louisiana, Maryland, Nevada, New York, Ohio
- Oregon, Pennsylvania, Utah, Texas, Virginia, Washington, Wisconsin, West Virginia
Construction is already underway on the first Stargate data center in Abilene, Texas. OpenAI will begin announcing additional sites “on a rolling basis” in the coming months.
How Many Data Centers Will Be Built?
OpenAI plans to construct between five and 10 campuses, each designed to support one gigawatt or more of power. However, executives noted that the number could change based on available energy resources at each location.
Job Creation and Infrastructure Concerns
Each data center is expected to create thousands of jobs, including roles in construction and operations. However, Stargate’s first data center in Abilene may only produce 57 jobs, raising concerns about economic impact.
When asked about the facilities’ electricity and water consumption, Keith Heyde, OpenAI’s director of infrastructure strategy, said the company is exploring alternative power sources and a “light water-footprint design.” However, specifics on water usage were not provided.
Data centers are highly energy-intensive. According to Energy.gov, they consume up to 50 times more energy per square foot than commercial office buildings and account for about 2% of total U.S. electricity use. In 2022, Google reported that a single data center could use up to 4 million gallons of water per day for cooling.
U.S.-China AI Competition Intensifies
OpenAI’s expansion comes as China’s AI sector rapidly advances. Last week, DeepSeek, a Chinese AI startup, dominated Apple’s App Store rankings after launching a powerful AI model trained at a fraction of the cost of U.S. competitors.
OpenAI CEO Sam Altman acknowledged DeepSeek’s progress, calling it “clearly a great model” at a recent event.
Lehane emphasized the urgency of U.S. efforts: “Right now, there are only two countries in the world that can build this AI at scale: the CCP-led China and the United States.”
Conclusion
OpenAI’s Stargate-backed data center expansion signals a major push to maintain U.S. dominance in AI. With geopolitical tensions and technological competition accelerating, the outcome of this investment will shape the future of AI leadership.
