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Investing.com -- OpenAI, Oracle Corporation (NYSE:ORCL), and SoftBank Group Corp. (TYO:9984) announced five new artificial intelligence data center projects under the Stargate initiative Tuesday, a sweeping infrastructure plan aimed at scaling AI compute capacity in the United States. The expansion brings Stargate’s total planned capacity to nearly 7 gigawatts and investment commitment to over $400 billion, placing the venture ahead of schedule to meet its $500 billion, 10-gigawatt target by the end of 2025.
The three new sites led by Oracle will be located in Shackelford County, Texas; Doña Ana County, New Mexico; and an undisclosed location in the Midwest that remains under wraps. Combined with a potential 600 megawatt expansion near the flagship Abilene site, these Oracle-developed facilities will deliver over 5.5 gigawatts of additional compute power and generate more than 25,000 onsite jobs.
Two additional sites, led by SoftBank, will be located in Lordstown, Ohio, and Milam County, Texas, and are expected to scale to 1.5 gigawatts within 18 months. The Ohio project has broken ground and is expected to be operational next year, while SB Energy, a SoftBank affiliate, is set to provide infrastructure for the Milam County project, enabling a rapid build model.
“These sites represent an important step in enabling faster deployment, greater scalability, and improved cost efficiency, making high-performance compute more widely accessible,” the companies said in a joint statement. OpenAI and SoftBank noted that the partnership is capable of scaling to multiple gigawatts in infrastructure, signaling further expansion beyond today’s milestones.
Site selection followed a nationwide screening process launched in January, during which the companies reviewed over 300 proposals from more than 30 states. OpenAI stated it is still in the process of evaluating additional locations, suggesting the $500 billion commitment may be only a baseline for broader investment.
Oracle’s participation in Stargate has been pivotal, with early NVIDIA GB200 racks deployed in the flagship Abilene campus in June. “Oracle’s reliable, scalable, and secure AI infrastructure is helping OpenAI rapidly scale its business,” said Clay Magouyrk, CEO of Oracle. “To meet this enormous demand, we continue to expand OCI’s footprint at an unrivaled pace.”
OpenAI CEO Sam Altman emphasized the importance of compute capacity in unlocking AI’s potential. “AI can only fulfill its promise if we build the compute to power it. That compute is the key to ensuring everyone can benefit from AI and to unlocking future breakthroughs,” said Altman.
Masayoshi Son, CEO of SoftBank, added: “Stargate is harnessing SoftBank’s innovative data center design and energy expertise to deliver the scalable compute that powers AI’s future. Together with OpenAI, Arm, and our Stargate partners, we are paving the way for a new era where AI advances humanity.”