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OpenAI, SoftBank, Oracle Expand Stargate Project to Add 7GW of AI Data Center Capacity

The Stargate project's expansion signals a significant increase in energy demand for artificial intelligence. Will this growth outpace the world's shift towards renewable energy?

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OpenAI, SoftBank, Oracle Expand Stargate Project to Add 7GW of AI Data Center Capacity

OpenAI, SoftBank, and Oracle are leading a major expansion of the Stargate project, aiming to add 7 gigawatts of data center capacity. This will significantly increase the energy demand for artificial intelligence, with potential impacts on local water supplies and global energy transitions.

The project involves constructing five new data centers in Texas, New Mexico, and Ohio. OpenAI and Oracle are collaborating on three of these, while OpenAI, SoftBank, and an affiliate are building the remaining two. Once operational, these facilities will consume nearly 20% of Texas' entire grid capacity, which runs at around 80 gigawatts.

The short-term energy mix will rely on natural gas, wind, solar, and retrofitted legacy plants to meet AI's growing demands. This expansion comes at a time when the world is trying to shift towards renewable energy sources, with nuclear power unable to meet near-term needs. OpenAI and its partners plan to invest upwards of $850 billion in AI infrastructure, with one site alone worth $50 billion according to OpenAI CEO Sam Altman.

Abilene, Texas, is preparing to build one of the largest data centers ever constructed to support the next generation of AI. Once complete, these facilities will require more energy daily than New York City and San Diego at their peak combined. The Stargate initiative, backed by Oracle and SoftBank, aims to bring total AI infrastructure power consumption to 17 gigawatts, roughly what Switzerland and Portugal consume combined.

The expansion of the Stargate project signals a significant increase in energy demand for artificial intelligence. While this growth promises advancements in fields like drug discovery and climate modeling, it also raises concerns about water usage, grid strain, and the pace of renewable energy adoption.

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