stargate project - abilene campus (oracle/crusoe)

published: October 16, 2025

stargate project - abilene campus (oracle/crusoe)

First operational Stargate facility; Oracle 15-year lease; designed for 100,000 GPUs on single network fabric

Investment$40.0B
Power Capacity1.2 GW
LocationAbilene, Taylor County, Texas
StatusOperational

project overview

First operational Stargate facility; Oracle 15-year lease; designed for 100,000 GPUs on single network fabric

location and scale

LocationAbilene, Taylor County, Texas
RegionWest Texas
StatusOperational
Total Investment$40.0B
Power Capacity1.2 GW
Total Area4.0M sq ft

key stakeholders

SponsorsOpenAI, Oracle, SoftBank, Crusoe Energy, Lancium
OperatorsOracle, Crusoe Energy
TenantsOpenAI

investment breakdown

The $40.0 billion investment is distributed across multiple components:

ComponentAmountPercentage
IT Equipment (GPUs, servers, networking)$26.0B65%
Building and Construction$8.0B20%
Power Infrastructure$4.0B10%
Other (cooling, security, land)$2.0B5%

equipment refresh cycles

IT equipment typically requires replacement every 3-5 years, meaning:

  • Initial deployment: $26.0B
  • 3-year refresh: Additional $20.8B estimated
  • Total over 10 years: $65.0B in equipment

infrastructure requirements

power capacity

The facility requires 1.2 GW of power capacity:

Total Power Capacity1.2 GW
Equivalent Homes Powered1,000,000
Annual Energy Consumption10,512 GWh/year
Renewable EnergyYes - committed to renewable sources

facility specifications

Total Area4.0M sq ft
Raised Floor Space2.8M sq ft (estimated)
Power Density428 W/sq ft

sustainability and cooling

Cooling TechnologyWater-based cooling systems
Renewable EnergyYes - renewable energy integration

Zero-water evaporation cooling system; natural gas turbines for backup; renewable energy integration planned


construction timeline

Announced2025-01
Construction Start2024-06
Expected Completion2026-06

development phases

PhaseDescriptionCompletion
Phase 12 buildings, 200+ MW2025-H1
Phase 26 buildings, 1000 MW2026-06

economic impact analysis

job creation

Peak Construction Jobs80,000
Permanent Operations Jobs240
Average Salary (estimated)85,00085,000 - 120,000

economic multiplier effects

The project’s total economic impact extends beyond direct investment:

Direct Investment$40.0B
Total Economic Impact (2.5x multiplier)$100.0B
Estimated Annual Tax Revenue$200M
30-Year Tax Revenue$6.0B

regional benefits

The project brings significant benefits to Texas:

  • Supply chain development: Local suppliers for construction materials, equipment, and services
  • Infrastructure investment: Improved power grid, roads, and telecommunications
  • Technology ecosystem: Attracts related tech companies and talent
  • Educational partnerships: Training programs and university collaborations
  • Real estate development: Increased commercial and residential development

technical specifications

workload types

Workload TypeDescription
HYPERSCALELarge-scale cloud computing and storage
AI-MLArtificial Intelligence and Machine Learning training and inference
CLOUDPublic cloud services and platforms

ai/ml capabilities

This facility is specifically designed for AI/ML workloads with:

  • High-density GPU computing: NVIDIA H100, H200, or GB200 GPUs
  • Advanced cooling: Direct-to-chip liquid cooling for high power densities
  • High-speed networking: 400G/800G Ethernet or InfiniBious InfiniBand
  • Massive storage: Multi-exabyte storage capacity for training data
  • Low-latency architecture: Optimized for distributed training workloads

rack density and power

Rack Power Density30-100+ kW per rack (AI-optimized)
Cooling TechnologyDirect liquid cooling (DLC) / Immersion cooling
PUE Target1.1 - 1.3 (industry leading)

strategic importance

competitive positioning

This mega-project represents a strategic investment by OpenAI, Oracle, SoftBank to:

  • AI Leadership: Establish dominance in AI infrastructure and capabilities
  • Compute Capacity: Scale compute resources for next-generation AI models
  • Competitive Response: Match or exceed competitor AI infrastructure investments
  • Cloud Expansion: Grow public cloud market share and regional presence
  • Customer Proximity: Reduce latency for regional enterprise customers
  • Service Diversity: Enable new services requiring massive compute resources

national infrastructure significance

As a mega-project (>$10B investment), this facility:

  • Represents a major commitment to US technology infrastructure
  • Contributes to national AI competitiveness and security
  • Demonstrates Texas’s emergence as a datacenter hub
  • Sets new standards for scale and efficiency in datacenter design

regional integration

Texas datacenter ecosystem

This project integrates into Texas’s growing datacenter infrastructure:

  • Power grid integration: Connection to regional transmission infrastructure
  • Fiber connectivity: Access to major internet backbone routes
  • Skilled workforce: Leverage regional technical talent and training programs
  • Supply chain: Integration with local construction and equipment suppliers

community relations

Large-scale datacenter projects require strong community partnerships:

  • Local hiring commitments: Priority hiring for construction and operations roles
  • Educational partnerships: STEM programs and technical training initiatives
  • Infrastructure improvements: Road, water, and utility infrastructure upgrades
  • Tax revenue sharing: Property tax and incentive agreements with local governments

Taylor County impact

The project specifically impacts Taylor County through:

  • Direct property tax revenue and economic development incentives
  • Increased demand for housing, retail, and professional services
  • Enhanced infrastructure that benefits broader community
  • Recognition as a technology and innovation center

stakeholder analysis

project sponsors

OpenAI | Oracle | SoftBank | Crusoe Energy | Lancium

operators and tenants

Primary Operators: Oracle, Crusoe Energy

The operators manage day-to-day facility operations including power, cooling, security, and network management.

Key Tenants: OpenAI

Anchor tenants provide long-term revenue commitments and shape facility design requirements.


sources and references

  1. OpenAI’s first data center in $500 billion Stargate project is open in Texas - CNBC (2025-09-23) - https://www.cnbc.com/2025/09/23/openai-first-data-center-in-500-billion-stargate-project-up-in-texas.html
  2. Oracle to spend $40bn on Nvidia GPUs for OpenAI Texas data center - Data Center Dynamics - https://www.datacenterdynamics.com/en/news/oracle-to-spend-40bn-on-nvidia-chips-for-openai-texas-data-center/
  3. Crusoe expands AI data center campus in Abilene to 1.2 gigawatts - Crusoe Energy - https://www.crusoe.ai/resources/newsroom/crusoe-expands-ai-data-center-campus-in-abilene-to-1-2-gigawatts

analysis current as of October 2025

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