OpenAI is exploring Oregon and 15 other states for potential sites to develop large-scale data centers aimed at enhancing its artificial intelligence capabilities, as part of the Stargate project launched by President Donald Trump.
OpenAI explores sites for data centers in Oregon and 15 other states
The primary data center will be located in Texas, with further facilities planned nationally. OpenAI has begun site visits in Oregon, Pennsylvania, and Wisconsin after issuing a request for proposals.
Business Oregon, the state’s economic development agency, reported that it has not yet submitted a proposal for the Stargate project. Spokesperson Nathan Buehler mentioned, “Our office first received a call from a consultant connected to it on Tuesday, and we subsequently are setting up another with them and our business development staff to learn more.”
Oregon already hosts a significant data center industry, with major players like Amazon, Apple, Google, LinkedIn, Meta, Oracle, and Elon Musk’s social media platform X operating within its borders. The Stargate initiative, a joint venture involving OpenAI, Oracle, and SoftBank, plans to invest an initial $100 billion, with a potential total investment of $500 billion, to build data centers and the necessary energy generation infrastructure to support AI development.
Trump characterized the Stargate project as a “resounding declaration of confidence in America’s potential” during its announcement. He emphasized its role in revitalizing U.S. leadership in AI as it faces competition from advances in countries like China.
In the wake of Trump’s announcement, various states have expressed interest in housing additional data centers. OpenAI’s vice president of global affairs, Chris Lehane, pointed out that the company’s request for proposals emphasizes the need for sites “with proximity to necessary infrastructure including power and water.”
OpenAI anticipates that the construction of five to ten data center campuses will lead to substantial job creation, though reports indicate that the first facility in Abilene, Texas, may only generate about 57 jobs. Each campus is designed to support approximately one gigawatt of power.
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Large-scale data centers have raised environmental concerns, consuming significantly more energy per square foot than standard commercial buildings. Data centers accounted for around 2% of total U.S. electricity usage, and previous reports highlighted that Google’s data centers consumed vast amounts of water for cooling purposes, estimating an average of 450,000 gallons per day in 2022.
The swift advancement of AI technologies in China adds urgency to OpenAI’s efforts. The Chinese startup DeepSeek has recently gained attention, with its competitively trained model causing disruption in U.S. markets.
Lehane noted that this competitive landscape showcases the need for the U.S. to maintain its position in AI development, stating, “Right now, there’s really only two countries in the world that can build this AI at scale.”
OpenAI’s site selection process for the Stargate project is being led by Keith Heyde, the director of infrastructure strategy and deployment. The company expects to reveal additional construction sites in the coming months.
In its outreach, OpenAI aims to foster the establishment of “AI hubs” in participating states, facilitating opportunities for startups and developers. While the Abilene site aims to create at least 57 jobs, the overall potential for job creation across the project remains uncertain.
Featured image credit: OpenAI
