OpenAI Plans Five Mega Data Centers in $400 Billion

Q: How much power will the new data centers require?

The data centers are expected to use about 7 gigawatts of power initially, with future needs potentially rising to 20 gigawatts.

Q: What is the cost of OpenAI’s infrastructure plan?

The current plan is valued at $400 billion, part of a broader proposal of $500 billion, with potential total energy infrastructure spending reaching $1 trillion.

Q: Where is OpenAI’s existing mega data center?

OpenAI is already constructing a 1,100-acre data warehouse in Abilene, Texas, expected to be the world’s largest.

OpenAI, in collaboration with Oracle and SoftBank under the Stargate project, has unveiled plans to construct five additional mega data centers across the United States. This announcement comes as part of OpenAI’s ambitious $400 billion infrastructure plan, aimed at solidifying the US lead in the global AI race.

The investment builds on the company’s $500 billion proposal made earlier this year and could eventually reach $1 trillion in energy infrastructure spending, according to the Wall Street Journal.

Massive Scale and Energy Needs

The new data centers are projected to require 7 gigawatts of power, enough to supply approximately 8 million homes, though OpenAI estimates future demands could rise to 20 gigawatts. At an estimated cost of $50 billion per gigawatt, these facilities represent a massive capital investment in AI computing infrastructure.

Existing Projects and Future Expansion

These new constructions are in addition to the 1,100-acre warehouse in Abilene, Texas, which is poised to become the largest data complex in the world. The Abilene site features a fiber cable long enough to reach the moon and back, highlighting the unprecedented scale of OpenAI’s infrastructure ambitions.

Industry Concerns and CEO Perspective

Experts have raised concerns that OpenAI’s rapid expansion in computing power could outpace actual AI usage and revenue, potentially leaving the company with significant debt. CEO Sam Altman has acknowledged these worries but argues that the investment is justified. “We are growing faster than any business I’ve ever heard of before,” Altman told CNBC.

OpenAI’s massive infrastructure push underscores its commitment to maintaining a competitive edge in the AI arms race, as the company continues to scale its capabilities and influence across technology, business, and society.

FAQ

Q1: How many new data centers is OpenAI planning?
A1: OpenAI, in partnership with Oracle and SoftBank, is planning five new mega data centers.

Q2: How much power will the new data centers require?
A2: The data centers are expected to use about 7 gigawatts of power initially, with future needs potentially rising to 20 gigawatts.

Q3: What is the cost of OpenAI’s infrastructure plan?
A3: The current plan is valued at $400 billion, part of a broader proposal of $500 billion, with potential total energy infrastructure spending reaching $1 trillion.

Q4: Where is OpenAI’s existing mega data center?
A4: OpenAI is already constructing a 1,100-acre data warehouse in Abilene, Texas, expected to be the world’s largest.

Q5: Are there concerns about OpenAI’s rapid expansion?
A5: Yes, some experts worry that OpenAI’s fast-paced investment in computing power may outpace actual usage and revenue, leading to potential debt, though CEO Sam Altman supports the strategy.