North America | January 23, 2025

The Future of Power: Stargate’s Grids for AI

Tech giants are backing a $500 billion effort, announced by President Trump and dubbed the Stargate Project, to add data centres across the U.S.

 

Image for illustration purposes.

In a bold move to revolutionise America’s energy landscape, a $500 billion plan dubbed ‘Stargate‘ has emerged, endorsed by President Donald Trump. This ambitious project aims to add data centres and Artificial Intelligence (AI) infrastructure, including the electrical grids to power them. This move aims to bolster the US position in the global technology race, particularly against China.

Key points:

1. The Stargate Project is a new company with lead investors including SoftBank, OpenAI, Oracle, and MGX. Also partnering are Microsoft and Nvidia.

2. Construction has already begun at a site in Texas, with $100 billion expected to be spent “immediately”.

3. Trump has pledged support through emergency declarations to facilitate rapid development and electricity production.

4. The initiative is expected to significantly impact the US electricity grid and its emissions over the next two decades.

5. Electricity demand from data centres could potentially triple by 2028, according to a Lawrence Berkeley National Laboratory report.

6. The project raises concerns about grid capacity and the need for increased energy production to meet AI-driven demand.

7. There are calls for the use of low-carbon energy sources to power these data centres.

8. Trump has rescinded a 2023 executive order from President Biden that required AI developers to share safety test results with the federal government.

This initiative represents a significant shift in US energy and technology policy, with potential far-reaching implications for the country’s infrastructure, economy, and environmental goals.

Source: Scientific American