'Stargate' Set to Transform Texas College Town

On January 21, 2025, during a White House press conference, President Donald Trump announced the launch of "Stargate," a $500 billion initiative poised to redefine artificial intelligence. He was accompanied by key figures from the collaborating organizations: OpenAI, SoftBank, Oracle, and MGX. The mission is to construct state-of-the-art AI infrastructure across the United States.

Construction has begun in Abilene, Texas, a city known for being home to two private universities: Abilene Christian University and McMurry University. The Mayor of Abilene, Weldon Hurt, stated that business owners can expect to see growth in customers and residents. “It’s a huge construction project. So initially, you’ll see all kinds of people needing hotel-related rentals and buying homes, not just for the construction aspect of this. When you’re talking about multiple billions of dollars in construction, it brings a lot to that part of our economy—our restaurants, everything,” Hurt said.

The 200-megawatt data center, initially conceived as a relatively modest endeavor, has expanded into one of the largest infrastructure projects in United States history. OpenAI announced that Stargate will "begin deploying" an initial $100 billion immediately, with the remaining investment to be allocated over the next four years.

Why this is Monulmental in Comparison to other Large American Infrastructure Projects?

The Stargate Project's $500 billion investment underscores its monumental scale, especially when compared to other significant American infrastructure endeavors. For context, the Manhattan Project cost approximately $30 billion in today's dollars, accounting for about 1.5% of the U.S. GDP in the mid-1940s. The Apollo Program was around $170–$180 billion, representing about 0.5% of the U.S. GDP in the mid-1960s. The Space Shuttle Program ranged from $275–$300 billion, about 0.2% of the U.S. GDP in the early 1980s. The decades-long Interstate Highway System buildout totaled approximately $500–$550 billion, averaging about 0.2%–0.3% of GDP annually over multiple decades. In comparison, the Stargate Project's $500 billion investment equates to roughly 1.7% of the U.S. GDP in 2024, highlighting its unprecedented scale and ambition.(https://www.reddit.com/r/LocalLLaMA/comments/1i6zid8/just_a_comparison_of_us_500b_stargate_ai_project/?rdt=65116)

But why Abilene Texas?

The selection of Abilene, Texas, as the starting point for this initiative is strategic. Given the massive energy requirements for large-scale Large Language Models (LLMs), securing a reliable and efficient energy source is crucial for the success of Stargate's data centers. For instance, the LLaMA 65B model consumes an average of 0.047 kWh per query, which is comparable to running a 50" LED TV for about 24 minutes, using a microwave oven for nearly 24 minutes, or operating a toaster for about 1 hour and 10 minutes. Considering that future models may have far more than 65 billion parameters and could serve billions of queries annually, the energy demands will be substantial.

Other industry leaders, such as Microsoft, Sabey, and Google, have already initiated the development of nuclear power plants to generate power for AI data centers. For example, Microsoft announced a 20-year agreement with Constellation Energy to purchase power from the Three Mile Island Unit 1 reactor in Pennsylvania, which is slated to reopen in 2028 to supply electricity exclusively for Microsoft's AI data centers.

Texas has historically maintained streamlined permitting processes and supportive policies for energy development compared to other states, creating a favorable environment for projects like the Stargate AI data center. Combined with the state's abundant energy resources, this makes Abilene an ideal location to support the project's ambitious infrastructure and energy requirements.

What to Expect

As the Stargate Project progresses, it will not only revolutionize artificial intelligence infrastructure but also significantly impact the U.S. economy. With an investment of $500 billion, this initiative stands as one of the most ambitious in American history, reflecting a bold vision for the future of AI.