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The $500 billion Stargate project will be powered by alternative energy sources
The Stargate project, a $500 billion joint initiative by OpenAI, Oracle, and SoftBank Group, aims to build numerous data centers to support the artificial intelligence sector. According to Bloomberg, a significant portion of the energy powering these facilities will come from solar panels and batteries developed by SB Energy.
Data centers are rapidly becoming some of the largest consumers of electricity, experts note.
The U.S. Department of Energy forecasts that the share of energy consumption by data centers will increase from 4.4% in 2023 to 12% by 2028. This trend raises concerns, as nearly half of the new data centers are expected to face energy shortages by 2027.
Nuclear energy is becoming a popular solution for tech giants. Google has signed a 500 MW deal with nuclear startup Kairos, while Microsoft plans to restart the reactor at the Three Mile Island station.
However, analysts highlight that building reactors takes years, with the first commercial installations expected only by 2030. This timeline casts doubt on their ability to address the short-term energy challenges of the AI sector.
In contrast, solar energy can be implemented more quickly. Experts note that constructing a solar power plant takes an average of 18 months, and its modular approach allows energy production to begin even before the project is fully completed.
Given the urgency and scale of Stargate, solar power plants are likely to become the primary energy source for the initial data centers, according to Bloomberg.
The main obstacle for solar energy is obtaining permits and connecting to the grid. However, data centers can bypass grid connections by sourcing energy directly from the plants. If the Stargate project is accelerated, solar power could play a key role in addressing the energy crisis, the report suggests.
On January 22, 2025, U.S. President Donald Trump unveiled a joint venture among several companies aimed at developing AI infrastructure. Dubbed “Stargate,” the project involves investments of up to $500 billion.
In its initial phase, companies will contribute $100 billion to the venture, with key backers including MGX, Microsoft, Nvidia, and Arm.
