OpenAI, Oracle partner on 1 GW Stargate data center in Michigan
- ByStartupStory | October 31, 2025
OpenAI, the leading artificial intelligence research and deployment company, has partnered with Oracle Corporation to build a massive 1-gigawatt data center campus called “Stargate” in the State of Michigan. This ambitious project will mark one of the largest and most powerful data center developments in the United States, underscoring the accelerating demand for computational infrastructure driven by sophisticated AI workloads.
The Stargate data center is planned to span over hundreds of acres and will leverage Oracle’s cloud infrastructure expertise alongside OpenAI’s advanced AI applications. The facility aims to provide the massive compute power necessary to train and serve next-generation AI models, including large language models, generative AI, and other computationally intensive tasks critical to OpenAI’s product vision.
Michigan’s strategic location offers robust power availability, connectivity, and favorable regulatory support, making it an ideal spot for such a large-scale data center. The project is expected to support thousands of construction jobs initially and create hundreds of long-term positions focusing on data center operations and cloud services management.
Oracle’s involvement brings its state-of-the-art cloud hardware and software stacks, optimized for high-performance AI workloads with a focus on security, reliability, and scalability. This partnership exemplifies the broader industry trend where AI innovators collaborate with hyperscale cloud providers to accelerate AI democratization while maintaining operational excellence.
OpenAI’s CEO, Sam Altman, emphasized the importance of infrastructure in enabling breakthroughs in AI capabilities, noting, “Building out powerful, energy-efficient data centers is foundational to unlocking transformative AI applications that will impact every industry worldwide.”
Besides providing raw computing power, the Stargate campus will incorporate sustainability-centered design principles including renewable energy sourcing, advanced cooling technologies, and energy efficiency measures to mitigate its environmental footprint.
This project comes at a time when demand for AI compute resources is soaring, fueled by widespread adoption across sectors such as healthcare, finance, manufacturing, and content creation. The collaboration between OpenAI and Oracle thus positions both companies at the forefront of the AI infrastructure race, ensuring that AI innovations remain scalable, secure, and accessible.
The Stargate data center initiative is expected to serve as a model for future large-scale AI infrastructure developments, combining centralized power with cutting-edge technology and responsible environmental stewardship.
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