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Data Center Push: OpenAI Expands Stargate Project Across 16 US States

Data Center Push: OpenAI Expands Stargate Project Across 16 US States
Credit: MATT O'BRIEN, Associated Press, KRON4

Data Center Push: OpenAI Expands Stargate Project Across 16 US States

OpenAI, the maker of ChatGPT, is on a mission to build a network of huge data centers across the United States to power its artificial intelligence technology. The company has issued a request for proposals for land, electricity, engineers, and architects and has already begun visiting locations in Oregon, Pennsylvania, and Wisconsin.

The Stargate project, championed by President Donald Trump, aims to invest $100 billion - eventually up to $500 billion - in large-scale data centers and the energy generation needed to further AI development. The partnership between OpenAI, Oracle, and Softbank has sparked controversy, with Elon Musk questioning its value.

OpenAI's vice president of global affairs, Chris Lehane, revealed that a number of states reached out to the company after Trump's announcement, eager to welcome additional data centers. The request for proposals emphasizes sites with proximity to necessary infrastructure, including power and water.

The Environmental Impact

AI technology requires vast amounts of energy, which often comes from burning fossil fuels - a significant contributor to climate change. Data centers also draw in large amounts of water for cooling. Some tech giants have started financing nuclear power to plug into their data centers.

OpenAI's proposal makes no mention of prioritizing renewable energy sources such as wind or solar, but suggests electricity providers should have a plan to manage carbon emissions and water usage. However, Keith Heyde, who directs OpenAI's infrastructure strategy, hinted at potential collaborations for new power generation at some sites.

Renewable Energy: A Pragmatic Approach?

The first Texas project is located in a region rich in multiple energy sources, including wind, solar, and gas. Crusoe CEO Chase Lochmiller emphasized that wind power is central to the project his company is building, with a gas-fired generator for backup power.

Lochmiller expressed confidence that the Trump administration will support wind-powered data centers when it's the cheapest way to access energy - despite the president's opposition to wind farms. Data centers consumed 4.4% of all US electricity in 2023 and are expected to increase to 6.7-12% by 2028, according to the Lawrence Berkeley National Laboratory.

The States Involved

  • Azizona
  • California
  • Florida
  • Louisiana
  • Maryland
  • Nevada
  • New York
  • Ohio
  • Utah
  • Virginia
  • Washington
  • West Virginia

OpenAI plans to build between five to 10 campuses, depending on their size. The company previously relied on business partner Microsoft for its computing needs but has recently amended their partnership to enable OpenAI to pursue data center development independently.

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