As you likely know, OpenAI has recently taken big steps in the world of artificial intelligence. They have recently released Sora 2, a hyperrealistic video-generation product that uses dramatically more energy than basic chatbots. OpenAI promises to continue increasing its capacity, and questions have been raised about OpenAI’s ability to fulfill its energy commitments. Chris Lehane, OpenAI’s vice president of global affairs, points to strategic reasons to concentrate data centers in the U.S. He brings up Texas as a major hub, in large part because of that state’s plentiful energy resources.
The company’s flagship Stargate data center, meanwhile, resides in Abilene, Texas—located approximately 200 miles from the energy-rich Permian Basin. As such, this facility will depend on abundant, nearby natural gas from that area for its energy supply. During a recent tour of the facility, OpenAI CEO Sam Altman noted the reliance on fossil fuels, stating, “We’re burning gas to run this data center.”
Sora 2’s incredible capabilities are worth the cost of energy. It takes exponentially more energy to run than the simpler AI tools. This boom in global demand for power has serious implications for both OpenAI’s long-term sustainability and its future ability to compete on the global stage. In his testimony, Lehane warned that failure to act would have dire repercussions. If the U.S. doesn’t prioritize investing in its data infrastructure, countries like China will take advantage and steal the lead. He touted China’s stellar accomplishments. In only one year’s time, the nation built 450 GW and 33 new nuclear reactors.
OpenAI isn’t the only tech company with design ambitions seeking to expand Texas’ data center footprint. Meanwhile, Poolside, another tech company, is building the largest known concentration of data centers anywhere in West Texas. This very ambitious undertaking will cover more than 500 acres. This facility, which is coming out of the ground in direct partnership with CoreWeave. They’re planning to provide access to more than 40,000 Nvidia AI chips — the workhorses that power today’s most advanced AI applications.
Meta, another one of Big Tech’s favorites, is making big moves in Texas. The company just revealed plans for a $1.5 billion data center to be located in El Paso. It’s scheduled to deploy in 2028 and will consume one gigawatt of capacity. Sustainability will take center stage as Meta’s El Paso facility will draw 100% of its energy from clean and renewable sources.
Lehane touted the possibilities of re-industrialization here in the United States with smart and targeted investments in clean energy and technology. He stated, “If we [as a country] do this right, you have an opportunity to re-industrialize countries, bring manufacturing back and transition our energy systems so that we do the modernization that needs to take place.”
As OpenAI continues to advance its technology with products like Sora 2, the company faces pressing challenges related to energy consumption and resource management. Competition is heating up from other domestic and foreign competitors. Those decisions we make today will determine what AI development looks like in the future and how quickly we can achieve energy sustainability goals.