The Stakes for States Seeking AI Infrastructure

The race for AI dominance is accelerating, and the stakes for states vying for AI infrastructure projects have never been higher. With the potential to generate billions in revenue, create tens of thousands of high-paying jobs, and establish long-term leadership in the AI revolution, forward-thinking states must act decisively. The key to success lies in strategic investments, energy planning, and an understanding of the economic forces at play.

The AI Infrastructure Revolution

At the core of this transformation is Project Stargate, a landmark initiative backed by OpenAI, SoftBank, Oracle, the UAE’s MGX, and the U.S. government. With an initial $100 billion investment—potentially scaling to $500 billion over four years—this initiative is set to redefine America’s AI infrastructure landscape. Stargate’s goal: constructing cutting-edge facilities across the country to ensure the U.S. remains a leader in the global AI arms race.

The first major Stargate site is already under construction in Abilene, Texas. Dubbed “Project Ludicrous” in registration documents, this 1,000-acre site will house ten high-capacity AI buildings, each designed to support 100,000 GPUs, with an ultimate goal of achieving a staggering 1 million GPUs per site. To meet the relentless energy demands of these AI operations, the project integrates a dedicated, off-grid 360 MW natural gas power plant, ensuring uninterrupted computing power.

In parallel, Colossus, the world’s largest AI supercomputer built by xAI in Memphis, provides another glimpse into the scale of this transformation. Beginning with 100,000 GPUs and targeting 1 million, Colossus exemplifies the economic potential of AI megaprojects. The facility has already created 320 specialized, high-paying jobs, and its use of portable generators to offset power demands highlights the critical role of energy availability in securing AI infrastructure investments.

Economic Impact and the Role of Energy

The financial and employment opportunities tied to these AI infrastructure projects are monumental. Colossus sets a precedent, where each AI facility generates approximately 320 permanent jobs with salaries averaging $160,000 per year—and in many cases, exceeding this benchmark. When expanded across ten buildings per site and four sites statewide, the result is an estimated 12,800 highly skilled, permanent positions directly tied to AI operations.

Beyond the AI workforce, integrated power plant operations required to sustain these facilities add another layer of economic value. The energy infrastructure supporting these projects is expected to create an additional 320 jobs per site, with salaries averaging $107,000 annually—further bolstering local economies.

The Opportunity for States

States with the right mix of strategic energy resources, geographic advantages, and economic incentives are in a position to cement their leadership in AI infrastructure development. The benefits extend beyond immediate job creation—winning these projects means bolstered tax revenues, a strengthened workforce, and long-term economic resilience.

The Google Datacenters Report by Oxford Economics (2018) underscores this point: “The greater the concentration of the data center’s supply chain that is located in the state, the greater will be the economic impact.” The message is clear—states that move swiftly and strategically to attract AI infrastructure projects will define their economic trajectory for decades to come.

The AI revolution is here. The question is: Which states will seize the opportunity?

Authored by Riley Howell