In response to Trump's "self-funded" request? OpenAI promises to cover the costs for the power upgrades of the $500 billion AI infrastructure

Wallstreetcn
2026.01.21 08:28
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OpenAI clearly stated, "In all of our Stargate community plans, we commit to covering our own energy costs to ensure that our operations do not raise your electricity prices." OpenAI's commitment follows a similar plan released by Microsoft last week, as Trump recently urged tech companies to bear the costs of building new power plants

OpenAI promised on Tuesday to bear the costs of developing the energy infrastructure required for its Stargate data center, ensuring that its operations will not drive up electricity prices for local residents. This statement comes as U.S. President Trump called last week for large tech companies to "pay their own way" in the construction of data centers.

The ChatGPT maker stated that it will work with the community where the project is located to customize plans based on local needs, including paying for additional grid infrastructure costs or securing energy supply independently. Stargate is a multi-year AI infrastructure construction plan valued at $500 billion, jointly promoted by OpenAI and its partners SoftBank and Oracle.

OpenAI's commitment follows a similar plan announced by Microsoft last week. Although the Trump administration supports data center investments to drive AI prosperity, rising energy prices are provoking strong opposition from residents, consumer groups, and politicians. Last Friday, Trump and several governors from northeastern states called for the largest grid operators in the U.S. to hold emergency auctions, forcing tech companies to bear the costs of new power plants.

This statement is significant for the AI industry, as energy access is becoming a critical bottleneck for AI growth, with several tech companies directly investing in power infrastructure to support larger-scale data center construction.

Commitment to Not Increase Local Electricity Prices

OpenAI clearly stated in a blog post released on Tuesday:

In all our Stargate community plans, we commit to self-funding energy costs to ensure our operations do not raise your electricity prices.

According to Bloomberg, the company will work with the community where the project is being developed to take different measures based on specific circumstances. These measures may include paying additional infrastructure costs to support the local grid or securing energy supply independently. OpenAI also stated that Microsoft's previously announced community AI commitments will apply to the AI campus built for OpenAI workloads.

Stargate Project Expands Across Multiple States

The Stargate plan was announced a year ago, aiming to build $500 billion worth of infrastructure for AI workloads, involving OpenAI and its partners SoftBank Group and Oracle. The project received support from Trump when it was first announced in January 2025.

The first site of the project is a large data center located in Abilene, Texas, developed by Oracle in collaboration with development partner Crusoe. Other sites under development are located in Texas, New Mexico, Wisconsin, and Michigan.

At the Wisconsin site, OpenAI stated that it is working with Oracle and Vantage Data Centers to coordinate with WEC Energy Group to develop new energy generation and capacity, including solar and battery storage, and design specialized rates to protect other customers from price increases

The Industry Faces Energy Bottlenecks

As energy acquisition becomes a key constraint on AI growth, several technology companies are directly investing in power infrastructure to support larger-scale and more numerous data centers.

Last week, Microsoft announced a similar initiative aimed at reducing water usage in its U.S. data centers and minimizing the potential impact of soaring electricity prices on local communities. Microsoft stated that it would pay utility rates sufficient to cover its electricity expenses and collaborate with local utility companies to expand supply based on data center demand