OpenAI plans to invest tens of billions of dollars to build a large data center near Savannah, Georgia. This initiative is part of the developer of ChatGPT‘s strategy to meet the rapidly growing demand for artificial intelligence technologies.
The startup has signed a contract with Georgia Power Co. and secured 3.2 gigawatts of electrical capacity for the data center complex in Effingham County, potentially making it one of OpenAI‘s largest facilities. The first few hundred megawatts are expected to come online starting in 2028, with the project fully realized by 2032.
OpenAI has committed to investing 20 billion dollars in the county to qualify for an incentive package that will be voted on this week. According to OpenAI Vice President of Compute Strategy Sachin Katti, if the project is fully realized with the planned 3.2 gigawatts of capacity, its cost will likely exceed 30 billion dollars. The company is currently seeking partners to finance and develop the data center and is also considering managing part of its operations independently.
Previously, OpenAI CEO Sam Altman stated that the company could spend trillions of dollars on computing infrastructure to achieve its long-term ambitions in artificial intelligence. OpenAI is already collaborating with partners to build large data centers in Europe, the Middle East, and several states in the USA as part of the Stargate initiative.
Changes in the Stargate strategy
Meanwhile, in recent months, OpenAI has abandoned some projects in the United Kingdom and Norway and decided not to expand its presence in the flagship Stargate campus in Texas. These decisions coincide with the company’s broader efforts to optimize investments and its product portfolio amid preparations for a potential Wall Street debut.
The approach to developing Stargate has also changed. Projects initially planned as joint ventures with Oracle Corp. and SoftBank Group Corp. have begun to be implemented in various partnership formats. Additionally, OpenAI has taken on a larger role in planning and designing the facilities, including the new complex in Georgia.
“Now that we have gone through two or three generations of computing systems, we have learned many lessons about how they need to be designed to simultaneously reduce costs and accelerate construction,” said Katti. “That is why we decided to lead the design and implementation process of this project ourselves.”
Open standards for data centers
OpenAI aims to standardize its AI data center projects and establish them as an open benchmark for other companies. The company plans to share data center projects, network infrastructure, and equipment so that other market participants can use them as a foundation for their own facilities. According to Katti, this initiative is similar to the Open Compute Project, co-founded by Meta Platforms Inc. in 2011.
Other AI companies are also actively expanding their computing resources. Anthropic PBC has signed several deals in recent months to meet demand, including gaining access to over 300 megawatts of data center capacity from SpaceX in Memphis, known as Colossus 1. Meanwhile, Meta has announced plans to invest over 250 billion dollars in a large data center campus in Louisiana.
At the same time, many such projects are facing resistance from local communities and politicians concerned about the impact of data centers on utility rates and the environment. As a result, the implementation of large-scale projects that technology companies consider critical for AI development may be delayed.
OpenAI stated that it will fully fund the construction of electrical infrastructure and power supply for the data centers in Georgia, emphasizing that state law does not allow these costs to be passed on to existing customers. The company also reported that the new complex will be able to automatically reduce electricity consumption during peak load periods to minimize the impact on local residents.
Additionally, the data center will use a closed-loop cooling system that allows the same water to be reused to reduce its consumption. OpenAI also stated that it will pay hundreds of millions of dollars in state and local taxes, create a community fund, and provide local students with free credits to use its artificial intelligence services.
Although OpenAI has already met with county representatives, the company plans to begin consultations with local residents to gather their feedback on the project, reported Director of Global Affairs Chris Lehane. He also noted that the company will conduct an independent audit to verify the fulfillment of its commitments. “All issues will be local. It is important to understand that there is no one-size-fits-all approach here,” he said.
Source: Bloomberg
