What Is Stargate? 5 Surprising Facts About the $500B AI Project

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Robert Waithaka

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6 min readReviewed
What Is Stargate? 5 Surprising Facts About the $500B AI Project

What is Stargate? It is the largest AI infrastructure project ever announced — a plan to build as many as ten gigantic AI data centres across the United States, with up to $500 billion in investment. OpenAI, Oracle and partners are involved; the Trump administration announced it; and individual sites are already running in Texas, being fought in Michigan, and reshaping an Ohio election. If you have asked a question to a frontier AI model recently, there is a good chance one of these buildings was involved. This explainer covers the numbers, the sites, the power problem and the controversies, all from the current reporting.

What Is Stargate?#

Stargate is the name for a network of purpose-built AI data centres announced in January 2025 as a private joint venture to build large data centres across the country — 20 of them at 15 gigawatts in the initial description, and up to ten sites at roughly five gigawatts each in later reporting. The scale is unprecedented: a single five-gigawatt site would draw more electricity than the entire state of New Hampshire. The project exists because frontier AI models need enormous, dedicated compute — and because the companies building them decided they could no longer rely on ordinary cloud capacity.

The Numbers Behind the $500 Billion Bet#

Figure: announced capacities at Stargate sites. Sources: Harvard Gazette; MIT Technology Review; CNBC.
Figure: the announced money. Sources: MIT Technology Review; CNBC.
NumberWhat it meansSource
~$500 billionTotal announced investment — more than the Apollo space programMIT Technology Review
10 sites, up to 5 GW eachThe headline Stargate planMIT Technology Review
15 GW across 20 data centresThe initial January 2025 descriptionNPR
$500B+The cost estimate for the single Pike County, Ohio campusCNBC
8 GWCapacity OpenAI agreed to secure at Pike CountyCNBC
$105 billionNvidia's chip commitment backing that capacityCNBC
1.4 GWSaline Township, Michigan site (≈ 1 million homes)Harvard Gazette

Table: the key Stargate numbers, each with its source. Project statuses change monthly — treat any figure as a snapshot.

Figure: the January 2025 description was 15 GW across 20 data centres; the current headline describes 10 sites at up to 5 GW each. Sources: NPR; MIT Technology Review.

Where the Sites Are#

SiteStatus (as reported)ScaleSource
Abilene, TexasOperational; ~200 MW running on ~100,000 Nvidia GB200 chips; six more buildings expected by mid-2026Rapidly expanding[Terakraft 10-largest ranking (2026)](https://www.terakraft.no/post/from-megawatts-to-gigawatts-the-10-largest-ai-datacenters-in-the-world-2026-edition)
Texas (Stargate program)Announced as the initial hub5–10 GW across phasesData Centre Magazine
Pike County, OhioProposed 10 GW campus; OpenAI securing 8 GW$500B+CNBC
Saline Township, MichiganApproved after developers sued the town2M+ sq ft; 1.4 GWHarvard Gazette; Schneier & Sanders

Table: where Stargate sites are and what has been announced. The map is still moving — Abilene is live, Ohio is the big bet, Michigan is the contested one.

Figure: the three named sites are not comparable — Abilene is live at roughly 200 MW while Pike County is a 10 GW proposal. Sources: Terakraft ranking (2026); Harvard Gazette; CNBC.

Who's Involved and Who Pays#

PlayerRoleEvidence in the reporting
OpenAILead customer and operator of sites; signed the 8 GW Ohio commitmentCNBC
OracleInfrastructure partner on Stargate campusesData Centre Magazine; Schneier & Sanders
Crusoe EnergyOperating partner at the Abilene, Texas siteTerakraft ranking
NvidiaChip supplier; $105B commitment for Ohio capacityCNBC
US governmentAnnounced the initiative and supports fast-tracked build-outNPR; Schneier & Sanders

Table: who's building Stargate and who pays, per the supplied reporting. The money ultimately comes from private capital and, critics argue, from ratepayers and communities who host the grid upgrades.

The Power Problem: 5 Gigawatts Per Site#

The defining constraint is power. Each site needs gigawatts of continuous electricity — more than the total demand of some US states — and the reported plan is for Stargate to be powered by a mix of natural gas and solar, with grid connections still the bottleneck. This is the same problem every AI data centre faces, at a larger scale: interconnection queues stretch for years, and utilities must build substations and transmission before a single GPU turns on. The 10 GW Ohio campus alone would consume roughly the annual electricity of 8 million US households.

The Local Fights#

Big infrastructure attracts big opposition. In Saline Township, Michigan, local officials voted to reject the project — and the developers sued the town of 3,000 and forced a settlement that allowed construction to proceed. In Ohio, the Pike County proposal became a state election issue: the Democratic Senate candidate made opposition to it a campaign centrepiece while OpenAI and Nvidia pushed the project forward, and a federal "Protecting Ratepayers Act" was introduced in Washington to make developers pay for the infrastructure they demand.

These fights are now the pattern for AI infrastructure everywhere, and the politics are shifting fast. Pennsylvania's governor signed an executive order forcing data-centre developers to pay for all new generation and transmission and to meet strict water and environmental standards. New York's governor established the nation's first yearlong moratorium on large data centres in July. Texas issued a June directive on infrastructure costs and water reuse. Polls and elections suggest the mood is bipartisan: being critical of data centres was a winning issue in November's Virginia and Georgia races, and data-centre opposition has been called a "sleeper issue" for the 2026 midterms.

Why Stargate Matters#

Stargate is the clearest example of what the AI boom is actually building: a national electricity problem dressed as a tech story, set against the roughly 4,000 data centres already operating in the US and the 3,000 more under construction. The deeper argument from Schneier and Sanders is that the local opposition is not the problem — it is "the only tangible mechanism" the public has to register concern about who captures the value AI creates. That concentration of wealth and power, they argue, is the greater risk, and the datacentre fights are just the starting point.

Understanding Stargate connects everything else on this site — the AI data centre explainer, where they get built, clean energy, and AI water use. If you want the models themselves explained, start with what an LLM is. Stargate is not the end of the story — it is the beginning of the next phase, and the numbers will keep changing.


Sources#

Last reviewed: 22 August 2026. Stargate statuses change monthly; this article will be re-checked quarterly.

Written to help beginners learn — general information, not professional advice. Verify anything important for your own situation.Editorial policy →

Who wrote this

Robert Waithaka

Robert Waithaka is an experienced project manager on Information Technology (IT) projects with over 5 years managing different software projects.