OpenAI and Oracle’s partnership to build 4.5 gigawatts of AI data center capacity in the U.S. is more than a tech upgrade, it marks a shift in rural land use. With an existing site in Abilene, Texas, this expansion will push total capacity past 5 gigawatts. That’s enough to power over 2 million chips—or millions of homes.
Backed by SoftBank and part of the $500 billion Stargate initiative, this move is not just about advancing artificial intelligence. It’s a $500B bet on keeping the U.S. at the forefront of the global AI race, promising over 100,000 jobs across construction, operations, and related sectors.
Site Analysis: Power and Positioning
The Abilene site checks every box for infrastructure resilience and expansion:
- 138-volt substation.
- Multiple AEP Texas transmission lines.
- Surrounding wind farms offering renewable energy inputs.
- Central Texas location with minimal environmental risk.
- Less than 7 miles from 3 power plants.
- Positioned outside major flood zones.
Why Abilene?
Abilene, Texas, offers a rare combination of logistical, geographic, and energy advantages:
- Expansive developable land.
- Established workforce ready for industrial roles.
- Access to existing power and fiber infrastructure.
For landowners in the region, this isn't just another tech facility. It’s a signal that industrial-scale data infrastructure could become a key land use category—one that brings long-term economic relevance to previously overlooked parcels.
Land Impacts: Construction, Demand, and Opportunity
When a company like OpenAI builds infrastructure at this scale, the ripple effects go beyond the data center walls:
- Construction Demand: Specialized contractors, electricians, and equipment operators are in high demand.
- Supporting Infrastructure: Roads, utilities, housing, and logistics scale up to support new workers and operations.
- Zoning and Entitlements: Local governments may revisit land use regulations to accommodate hyperscale data centers.
All of this means the land near Stargate may now see significantly more value. Not just for potential resale, but for long-term lease and development plays.
Final Thoughts
The Stargate initiative isn’t just about tech. It’s a signal that land, especially in rural markets, is being revalued for its role in powering tomorrow’s digital infrastructure.
If you’re in the business of land, owning it, brokering it, or investing in it, now’s the time to pay attention. Because in Texas, AI isn’t just training models. It’s raising land values.
For a closer look at how data center development is reshaping land markets, check out the Acres Data Center Index.