OpenAI, Oracle, SoftBank Expand Stargate AI Project with Five New Data Centers

TLDR

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OpenAI, Oracle, and SoftBank announced five new AI data centers across the US as part of the $500 billion Stargate project
Three sites will be built by OpenAI and Oracle in Texas, New Mexico, and the Midwest
Two additional centers will be constructed by OpenAI and SoftBank in Ohio and Texas
The expansion brings total Stargate capacity to nearly 7 gigawatts with over $400 billion investment planned
The project expects to create 25,000 onsite jobs with construction beginning in 2025-2026

OpenAI, Oracle, and SoftBank announced Tuesday the expansion of their Stargate artificial intelligence project with five new data centers across the United States. The announcement came during a press conference in Abilene, Texas, where the first Stargate facility is already operational.

These CapEx numbers are absolutely insane:
OpenAI, Oracle, and SoftBank are building FIVE new Stargate data centers, per today's OpenAI announcement.
This comes just months after the announcement of the first Stargate project which was a $100+ billion project.
Together, these… pic.twitter.com/Rx9zFLhUGo
— The Kobeissi Letter (@KobeissiLetter) September 23, 2025

The Stargate project launched in January with President Donald Trump’s backing as a private-sector initiative. The venture aims to invest $500 billion over four years to build AI infrastructure in the US.

OpenAI and Oracle will construct three of the new facilities. These sites will be located in Shackelford County, Texas, Dona Ana County, New Mexico, and an undisclosed location in the Midwest.

The remaining two data centers will be built through a partnership between OpenAI and SoftBank. These facilities will be positioned in Lordstown, Ohio, and Milam County, Texas.

Infrastructure Requirements Drive Expansion

“AI is different from the internet in a lot of ways, but one of them is just how much infrastructure it takes,” OpenAI CEO Sam Altman said at Tuesday’s press conference. The expansion reflects the massive computational needs of generative AI services like ChatGPT.

Oracle co-CEO Clay Magouyrk emphasized the focus on providing adequate compute capacity for AI operations. Oracle stock rose 1.7% in after-hours trading following the announcement, after falling 4.4% during regular trading hours.

The five new sites will increase Stargate’s total data center capacity to nearly 7 gigawatts. This expansion represents over $400 billion in planned investment over the next three years.

AI data centers require specialized infrastructure to handle powerful AI workloads. These facilities need extensive networking, servers, and cooling systems to prevent hardware overheating during intensive computational tasks.

Construction Timeline and Job Creation

Construction has already begun on the Shackelford County site built by OpenAI and Oracle. The first building at this location is scheduled for completion in the second half of 2026.

The existing Abilene facility is set for completion in 2026. Part of this data center currently operates on Oracle Cloud Infrastructure, with companies exploring a potential 600-megawatt expansion.

The three Oracle-OpenAI sites, including the Abilene center and potential expansion, will deliver over 5.5 gigawatts of capacity. These facilities are expected to create over 25,000 onsite jobs.

Timeline details for the New Mexico and Midwest centers remain unspecified. The two SoftBank partnership sites are expected to begin scaling operations next year.

The project includes ongoing collaborations with CoreWeave for additional data center development. Nvidia announced Monday it will invest up to $100 billion in OpenAI and supply data center chips for the initiative.

OpenAI and partners plan to use debt financing to lease chips for the Stargate project. The original Stargate goal targeted 10 gigawatts of total data center capacity with $500 billion in investment over four years.

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