Business

Stargate's First Data Center in Texas: A Massive Venture with Job Potential

Published January 23, 2025

A significant new venture named Stargate, backed by major companies like Oracle, OpenAI, and SoftBank, has begun its first phase in a small Texas city, Abilene. This $100 billion project is set to establish a data center across an area of about 875 acres, which is roughly equivalent to the size of Central Park in New York City.

Details of the Project

In Abilene, the data centers will primarily support advanced artificial intelligence systems developed by OpenAI. Despite the vast area allocated for development, the project guarantees a minimum of 57 full-time jobs with an average annual salary of $57,600. However, the city and developers anticipate that the actual number of jobs may exceed this figure.

Job Creation and Economic Impact

The Development Corporation of Abilene predicts around 100 high-skilled positions as a result of the first phase. Additionally, Crusoe Energy Systems, one of the developers, has also mentioned that over 100 full-time jobs are expected in roles such as data center technicians and maintenance staff. Currently, the construction site employs more than 1,000 workers, highlighting the initial surge in job creation.

OpenAI has projected that the Stargate initiative will generate hundreds of thousands of construction jobs nationwide through similar infrastructures. While typical data centers may not require as many full-time staff after completion, they initially create a significant number of construction jobs.

Future Prospects

Construction is underway for the Abilene data center, with plans for a 200-megawatt facility, eventually expanding to 1.2 gigawatts. For context, one gigawatt can power approximately 200,000 homes in Texas, emphasizing the project's scale and ambition.

Jason Krer, a representative from Crusoe, noted that there are ten buildings currently under construction, with plans to expand further. The project also benefits from tax incentives granted by the city of Abilene, with an 85% discount on property taxes for 20 years.

Overall, the Stargate project signifies a growing trend of tech companies establishing significant facilities in areas that may not previously have been technological hubs. As construction advances, the economic impact on Abilene and potential for future job creation will become clearer.

data, jobs, technology