U.S. President Donald Trump announced a $500 billion AI infrastructure project on Tuesday, bringing together OpenAI, SoftBank, Oracle, and the United Arab Emirates’ MGX to build data centres across America. Called ‘The Stargate Project’, this venture stands as the largest AI computing investment to date.
The venture brings together OpenAI’s operational expertise with SoftBank’s financial backing. Microsoft, Nvidia and Arm join as technology partners, while MGX provides additional investment support. SoftBank CEO Masayoshi Son will chair the project.
Microsoft modified its exclusive cloud provider agreement with OpenAI, allowing the AI lab to seek additional computing capacity beyond Azure. This change enables OpenAI to expand its infrastructure through the Stargate Project while maintaining its Microsoft partnership.
Construction Begins in Texas
Oracle chairman Larry Ellison confirmed ten 500,000-square-foot facilities are under construction in Abilene, Texas. Ten more buildings will follow.
The project starts with $100 billion in immediate funding, with the rest deployed over four years. Each building spans half a million square feet, Ellison told the White House briefing. The facilities will support AI research, training, and applications like electronic health record management.
UAE Deepens U.S. Tech Investment
The announcement follows UAE’s growing stakes in US computing infrastructure. DAMAC Properties pledged $20 billion for data centres across the Midwest and Sun Belt earlier this month.
MGX, backed by Abu Dhabi’s Mubadala wealth fund, built on its previous Global AI Infrastructure Investment Partnership. The venture with BlackRock and Microsoft aimed to raise $100 billion for AI computing, focused on building data centres and power infrastructure to meet growing AI demands.
Power Demands Rise Sharply
US data centre power use could triple by 2028, reaching up to 12% of national electricity consumption. Current usage sits at 4% of total power load. This growth stems from AI’s increasing computing needs, particularly for training large language models.
The Department of Energy study shows annual energy use could reach between 74 and 132 gigawatts by 2028. New AI data centres now require up to one gigawatt of power—enough to supply all homes in Philadelphia.
As these domestic developments accelerate, international competition heats up.
Global Tech Competition Heats Up
Trump promised emergency declarations to speed up construction. “China is a competitor, and others are competitors. We want it to be in this country,” he said at the White House announcement. The timing aligns with mounting concerns over data sovereignty and the ongoing TikTok ban saga.
As the US pushes to onshore critical technology infrastructure, these investments denote a broader strategy to maintain technological supremacy. “We have an emergency, we have to get this stuff built,” Trump asserted, promising emergency declarations to expedite construction.
The technological arms race has sparked international tension. The European Union has voiced concerns over recent US restrictions on AI chip exports to some EU member states. The policy limits computing power sales to Eastern European countries, creating tension within the EU’s single market.
Polish Minister of Digital Affairs Krzysztof Gawkowski called the White House’s decision “incomprehensible” and “not based on any substantive reasons.” Baltic states warned it undermines their AI development.
Mubadala CEO Khaldoon Al Mubarak captured the scale of coming changes: “This is a technology that no one today really appreciates, truly the level of disruption that it’s going to create[.] Every sector is going to be disrupted.”
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