Texas OpenAI Center Raising Billions Of Dollars

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A financial firm is raising billions of dollars to build AI data centers in Abilene, Texas. Customers and investors include AI giant OpenAI, which is in an AI race with Google, Oracle, Elon Musk, and several startups. Energy availability is at the center of the race. The current grid system in the US cannot provide electricity for the industry, which is exploding in size.

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According to The Information, “Crusoe, a data center company focused on artificial intelligence, is in advanced discussions to raise several billion dollars in debt financing for a data center it is building for OpenAI in Texas, according to two people with direct knowledge of the situation.”

Crusoe previously provided energy for electricity-hungry Bitcoin mining. Oracle may be part of the funding and locate some of its data centers in the same area.

Three Mile Island

Google recently invested in the nuclear plant company Kairos Power. AI data centers powered by these plants could be built only “this decade.” Microsoft plans to use the ancient Three Mile Island reactors to provide energy.

The problem with these data centers is that they will not be online soon. AI data centers need power today for expansion. At this point, in many cases around the country, they have to compete for energy with legacy residential and business customers.

The AI energy shortage won’t be resolved for several years, and by then, the need may have expanded exponentially.