Trump-backed $100B Stargate AI project to rely partly on solar

Despite Trump’s push for fossil fuels, he’s fast-tracking a project that’s expected to use solar.

Edited by: Alix Langone
Updated Jan 29, 2025
4 min read
Data center

One of the biggest investments in AI infrastructure in the U.S. will likely be powered partially by solar and batteries—and President Trump is helping it happen.

On his second day in office, Trump announced Stargate, a $500 billion AI infrastructure venture. The project—which already has $100 billion ready for deployment—involves building new data centers nationwide that the company says will support the growth of artificial intelligence and protect national security. Those data centers will need a lot of power, and a new report from Bloomberg suggests that solar and batteries will be tapped to supply it.

This news comes after Trump released an executive order to pause funding for federal programs that provide incentives for American businesses that manufacture parts for solar panels and storage.

Here’s what we know about Stargate and how solar and batteries will play a role.

Good question. The Stargate Project is a new company led by OpenAI, Oracle, and SoftBank. According to the project’s website on OpenAI, Stargate will “secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world.”

Trump echoed this sentiment during his announcement of the project and promised that Stargate would ensure “the future of technology” in the U.S. 

The Stargate Project has committed to investing up to $500 billion into AI infrastructure over the next four years, with $100 billion ready to be deployed “immediately,” according to OpenAI. Other companies, including Arm, Microsoft, and NVDIA, are also involved in Stargate as “key initial technology partners.”

Stargate’s first proposed site is already being built in Texas and other potential sites across the country are reportedly in the pipeline, according to OpenAI.

The Stargate project announcement was made the day after Trump returned to office, with CEOs from Oracle, SoftBank Group, and OpenAI in attendance. OpenAI CEO Sam Altman took the podium to praise the president for making the project happen.

“We wouldn't be able to do this without you, Mr. President, and I'm thrilled that we get to," Altman said.

One week after Stargate was announced at the White House, Bloomberg reported that the project will be powered, at least in part, by solar panels and battery storage. It makes sense considering that SoftBank (one of the project's key partners) backs a renewable energy company called SB Energy that develops utility-scale solar, storage, and AI-enabled energy management.

Bloomberg reported that SB Energy is expected to build at least some power for Stargate, citing sources close to the project. In the report, Bloomberg writes that SB Energy and SoftBank declined to comment. EnergySage reached out to OpenAI for comment but did not immediately receive a response.

It’s not all sunshine…

While it’s highly likely that solar and storage will play a role in powering Stargate, it probably won’t be its only source of energy.

On Monday, Business Insider reported that developers of the first Stargate data center in Abilene, Texas have applied to build a natural gas plant. In its article, Business Insider said that OpenAI and Oracle didn’t respond to requests for comment, and their findings are based on public filings with the Texas Commission on Environmental Quality (TCEQ).

According to Business Insider’s research, the Stargate developers submitted an initial application for permits for 10 simple-cycle natural gas turbines. The application is currently being reviewed by the TCEQ.

But… the proposed site for Stargate’s first data center is a clean energy campus

Interestingly, the proposed site for Stargate’s first data center—and these natural gas turbines—is the Lancium Clean Campus in Abilene. Lancium relies on “abundant, proximate wind and solar resources” and energy storage, according to its website. The Texas state comptroller’s records show that Oracle is the current occupant on the Abilene campus.

The Lancium Clean Campus was originally earmarked for Bitcoin mining and the site was described as a “renewable energy power data center campus,” according to Data Center Dynamics. Crusoe—a crypto mine turned AI firm—was leading that project, but the company reportedly signed a deal to lease the site to Oracle instead.

Natural gas is defined as a “relatively clean burning fossil fuel” according to the U.S. Energy Information Administration (EIA). The key word there is “relatively,” as in, it’s a cleaner alternative than burning coal or petroleum products. The EIA admits that natural gas still contributes to greenhouse gas emissions, water contamination, and air pollution, and may negatively impact vegetation and wildlife.

EnergySage reached out to Lancium to confirm that natural gas turbines are being built on its clean energy campus,  and if renewables would play a role in powering the Stargate data center, but did not immediately receive a response.

AI consumes a significant amount of power and is reportedly already putting a strain on household electricity. If solar energy is needed to power the biggest AI infrastructure investment in America’s history, it could put the administration at odds with its decision to freeze funding for solar incentives, like those outlined in the Inflation Reduction Act (IRA).

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