Stargate Phase 2 – Abilene, TX: Aterio's Construction Update

The Stargate initiative—an ambitious $500 billion AI infrastructure project spearheaded by OpenAI, Oracle, SoftBank, and MGX—is rapidly transforming the landscape of artificial intelligence capabilities. With Phase 2 of the project currently underway, the focus is on constructing high-density, GPU-optimized data centers designed to meet the escalating demands of AI workloads.

Current Construction Status

Phase 2 of the Stargate project is progressing swiftly at the Abilene, Texas campus. This phase involves the simultaneous construction of six structures, each comprising four buildings. Each building is projected to be approximately 125,000 square feet, equipped with a power capacity of ∼37.5 megawatts, and designed to support ∼12,500 Blackwell GPUs. The entire phase is targeted to go live by Q4 2026, reinforcing the trend toward GPU-optimized, high-density campuses to meet escalating AI workload demands.

Figure: Stargate Phase 2 construction progress as of June 1, 2025. Captured via Pléiades Neo satellite, © 2025 Airbus DS, sourced through SkyWatch. Image analysis by Aterio.

The project has secured a significant financial boost with a $7.1 billion construction loan arranged by Newmark for the second phase of the AI-related campus in West Texas.This funding underscores the confidence in the project’s potential to revolutionize AI infrastructure.

Financial Backing and Partnerships

The Stargate project is backed by a consortium of industry giants:

• OpenAI: Leading the AI research and development efforts.
• Oracle: Providing cloud infrastructure and enterprise solutions.
• SoftBank: Offering substantial financial investment and strategic guidance.
• MGX: Contributing to the project’s expansion and global reach.
  

Oracle has reportedly placed an order for approximately 400,000 Nvidia GB200 AI chips, totaling around $40 billion, for deployment at the new data center in Abilene, Texas.This massive investment highlights the scale and ambition of the Stargate initiative.

Infrastructure and Energy Considerations

The sheer scale of the Stargate project necessitates significant energy resources. The Abilene campus alone is expected to provide 1.2 gigawatts to the power-intensive AI center. To meet these demands, developers have filed permits to operate natural gas turbines at the site and have discussed generating power there with solar and wind projects and modular nuclear reactors as well.

However, the project’s reliance on fossil-fuel-driven power plants has raised environmental concerns. Environmental groups have criticized the Stargate Project’s energy strategy, urging a shift towards renewable energy to mitigate potential environmental impacts and prioritize sustainability in its ambitious AI infrastructure plans.

Conclusion

Phase 2 of Stargate is progressing rapidly, supported by significant financial investments and strategic partnerships. While positioned to significantly advance global AI capabilities, the project also raises important discussions surrounding energy sustainability and environmental responsibility.

To stay ahead of all major data center developments across the U.S.—including construction timelines, capacity estimates, and AI infrastructure trends—download our latest Data Center Report or schedule a call with the Aterio team to explore the insights tailored to your strategy.