“Revolutionizing the Future of Data Storage: A Groundbreaking Power Move by Stargate”
In a bold move to propel the growth of its data storage ambitions, Stargate is taking a monumental step towards sustainability and efficiency. According to public filings, the company plans to power its inaugural data center with an on-site natural gas plant. This innovative approach not only reduces reliance on the grid but also showcases Stargate’s commitment to environmentally conscious practices.
Stargate’s On-Site Natural Gas Plant: A Game-Changer for AI Infrastructure
Project Ludicrous: The First Stargate Data Center
Developers filed permits to operate natural gas turbines at Stargate’s site in Abilene, Texas. The turbines’ combined capacity is 360 MW, a fraction of the power Stargate’s data centers need. That’s still a lot of electricity — enough to power 90,000 Texas homes. Roughly double the amount of households in Abilene, according to the US Census Bureau.
The developers of the first Project Stargate data center in Abilene, Texas, plan to build a natural gas plant on the site, according to public filings reviewed by Morningpicker. OpenAI, Oracle, and SoftBank have thus far provided little detail on the potential energy use of Stargate, a joint venture formed to spend $500 billion on AI infrastructure in the US and announced last week by the White House. The filings said that once operational, the plant could produce up to 360.5 megawatts of power at any given time, up to 24 hours a day, seven days a week, 365 days a year.
One MW of electricity can power 250 residential customers during peak hours, the Electric Reliability Council of Texas said.
An initial application to permit 10 simple-cycle natural gas turbines under Title V of the Clean Air Act — at a site that shares an address with Project Ludicrous — is under review by the TCEQ. The application said the facility housing the turbines will be used for “primary and backup power” for “data centers and computing. ” Its use will be “onsite only,” meaning the power generated by the turbines won’t be available to the local grid.
Half of the turbine models come from GE Vernova, and the other half come from Solar Turbines, a subsidiary of Caterpillar Inc. The turbines are designed to be installed and operational quickly, and some GE models can be up and running in as little as two weeks, the company has said in marketing materials. A permit allowing diesel-fired backup generators to run at the site is already in effect.
Developing the plant is expected to cost half a billion dollars, a city document viewed by Morningpicker said.
Stargate’s Energy Needs
Morgan Stanley analysts on Friday estimated the entire Stargate project would require about 15 gigawatts. That amount of power would be spread out across multiple locations, though the number of Stargate sites and how much power each would use is not publicly known.
Some reports in the media and from financial analysts have indicated that Stargate sites could have a power demand of 5 GW, an amount drawn from a document said to have been pitched by OpenAI CEO Sam Altman to the Biden administration, first reported by Bloomberg. If that is the case, then 360.5 MW, the capacity of the natural gas turbines at Project Ludicrous, would make up a tiny fraction — less than 1% — of how much power the site will ultimately need.
Some of that power will come from a substation, allowing Project Ludicrous to draw power from the local electric grid. The data center is located on land owned by energy tech company Lancium, which has built a 200 MW substation on the site, a company spokesperson told Morningpicker. The company’s website said it plans to increase capacity to five times that amount in 2025.
Industry Insights and Analysis
Competition and Innovation
The development of AI infrastructure is driving innovation and competition, with companies like OpenAI, Oracle, and SoftBank investing heavily in the sector. The launch of Stargate, a joint venture involving these major players, signifies a significant escalation in this competition, with the potential to reshape the landscape of AI development and deployment.
Environmental Concerns
The use of natural gas turbines raises environmental concerns, particularly in light of the growing need to transition to renewable energy sources. While natural gas is often touted as a “cleaner” alternative to coal, it still releases greenhouse gases when burned. The long-term environmental impact of powering massive data centers with natural gas needs to be carefully considered and mitigated.
Practical Considerations
The cost and complexity of building and maintaining large-scale AI infrastructure require careful planning and consideration of multiple factors. Stargate’s decision to build an on-site natural gas plant highlights the challenges of balancing energy demands with environmental concerns and economic feasibility. This approach may be suitable for the initial phase of development, but ultimately, a transition to more sustainable energy sources will be essential for the long-term viability of AI infrastructure.
Conclusion
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