In a bold leap forward for artificial intelligence infrastructure, OpenAI and Oracle have unveiled plans for their flagship Stargate data center in Abilene, Texas, which is set to house over 450,000 Nvidia GB200 GPUs. This massive facility, part of a broader $500 billion initiative to build AI supercomputing capabilities, underscores the escalating energy demands of next-generation AI technologies. As the energy sector grapples with the intersection of tech innovation and power sustainability, the Stargate project offers a glimpse into how data centers are reshaping local economies and energy landscapes.
Project Overview and Scale
The Abilene campus spans 800 acres and represents the first operational site in the Stargate program, a joint venture involving OpenAI, Oracle, and SoftBank.
Already up and running, it integrates Oracle Cloud Infrastructure with racks of Nvidia’s cutting-edge GB200 GPUs, designed for high-performance AI training and inference.
The deployment of 450,000 GB200 units positions this data center as one of the world’s largest AI compute hubs, capable of powering advanced models that could revolutionize industries from healthcare to finance.
Each GB200 GPU consumes approximately 1,200 watts, leading to an estimated power draw of around 540 megawatts (MW) for the GPUs alone.
Factoring in cooling, networking, and other overheads—with a typical power usage effectiveness (PUE) ratio of 1.2 to 1.5—the facility’s total power requirement could exceed 650-800 MW. This scale highlights the energy-intensive nature of AI, where data centers like Stargate are pushing the boundaries of what’s possible in computational power.
Latest Updates from OpenAI and Oracle
Recent developments have accelerated the Stargate initiative. In July 2025, OpenAI and Oracle announced a partnership to develop an additional 4.5 gigawatts (GW) of data center capacity across the U.S., bolstering their AI ecosystem.
By September, the collaboration expanded with five new AI data center sites, putting the project ahead of schedule toward its 10 GW and $500 billion commitment by year’s end.
These sites, including expansions in Texas, New Mexico, and other locations, will join the Abilene flagship, which is already delivering the first batches of GB200 racks.
Oracle’s involvement has deepened, with commitments to deploy 50,000 AMD AI chips as an alternative to Nvidia, enhancing diversity in the supply chain.
OpenAI, meanwhile, has secured a five-year, $300 billion cloud deal with Oracle to handle surging compute demands, while also navigating chip export controls with Oracle’s assistance.
This partnership not only scales OpenAI’s infrastructure but also positions Oracle as a key player in the AI arms race, with plans for tens of thousands of advanced chips in high-density, liquid-cooled setups.
Behind-the-Meter Power Strategy and Grid Independence
A defining feature of the Abilene Stargate data center is its “behind-the-meter” (BTM) configuration, meaning it generates and consumes power onsite without relying on the Electric Reliability Council of Texas (ERCOT) grid.
This approach sidesteps interconnection delays—often exceeding five years in regions like ERCOT—and mitigates risks of grid instability amid Texas’s booming data center growth.
By operating independently, the facility avoids contributing to or drawing from ERCOT’s transmission costs, a hot-button issue under recent Texas legislation like Senate Bill 6, which regulates large loads and cost allocation.
Power sources for Stargate emphasize sustainability and reliability. The Abilene site will draw from solar power and battery storage developed by SoftBank’s SB Energy subsidiary, ensuring renewable integration.
Broader plans include small modular reactors (SMRs), natural gas with carbon capture and storage (CCUS), and additional renewables to meet the project’s multi-GW needs.
This diversified mix addresses the enormous energy footprint: at full capacity, the Abilene facility’s power usage could equate to the annual electricity needs of approximately 450,000 to 650,000 average U.S. homes, based on a 10,457 kWh per household yearly average (roughly 1.2 kW continuous draw). For context, this rivals the output of a mid-sized power plant, highlighting why BTM strategies are increasingly favored for hyperscale projects.
Benefits to the Local Community
Beyond its technological prowess, the Stargate data center promises significant economic uplift for Abilene and surrounding areas. Construction alone could create thousands of temporary jobs, from site preparation to installation of high-tech infrastructure.
Once operational, the facility is expected to employ hundreds in roles spanning IT, engineering, maintenance, and security—high-quality, well-paying positions that bolster the local workforce.
Oracle has committed to engaging local businesses for support services, injecting capital into the economy through procurement, logistics, and vendor partnerships.
This influx could spur ancillary growth, such as improved infrastructure, housing developments, and educational programs focused on AI and tech skills.
Texas’s pro-business environment, with affordable energy and streamlined permitting, has already made it a data center hotspot, driving billions in investments and modernizing communities like Abilene.
Critics note potential strains on water and land resources, but proponents argue the long-term benefits— including tax revenues and innovation hubs—far outweigh these, positioning Abilene as a key player in the AI frontier.
As AI continues to evolve, projects like Stargate in Abilene illustrate the symbiotic relationship between energy innovation and technological advancement. With its BTM power model, renewable integrations, and community-focused approach, this data center isn’t just computing the future—it’s powering it sustainably.
Living in Abiline, I’ve noticed a significant difference since the Stargate opened, with a considerable increase in traffic. But a growing city is a good thing for home values.
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