In a strategic pivot toward the American heartland, OpenAI is eyeing Indiana as a potential site for a 1-gigawatt (GW) data center—a contrast to previous speculations of foreign locations. It is part of the mega-infrastructure project dubbed Project Stargate, a $500 billion initiative to dramatically increase AI computing infrastructure across the U.S.
Stargate at a Glance
Stargate, which was unveiled in January 2025, is a joint venture backed by OpenAI, SoftBank, Oracle, and MGX, with SoftBank providing the financing and OpenAI overseeing operations. The plan is to spend $100 billion upfront with the ambition of reaching $500 billion in total within four years.
To date, Stargate has already opened the first mega-campus in Abilene, Texas, with Oracle and OpenAI providing 4.5 GW of data center capacity within the project area.
Why Indiana?
While earlier coverage emphasized international expansions, recent investigations and major media coverage show OpenAI is actively evaluating U.S. states—including Indiana—for new Stargate data center campuses.
A release in February 2025 reported that 16 states, stretching from Pennsylvania to Wisconsin, had expressed “real interest” in hosting Stargate facilities.
Though Indiana was not named as being among the 16, more general reporting from The Washington Post indicates that Indiana—and, by extension, semi-rural or exurban areas like it—exurban areas—have generated pushback but are nonetheless on the radar of AI-scale data center planning.
What a 1 GW Data Center Means in Indiana
1 GW center is 10x the size of today’s hyperscale data centers—a huge infrastructure undertaking. It will place Indiana in the league of states competing for the massive investment in data centers, much like Google’s planned $10 billion data center campus in West Memphis, Arkansas.
To put that into perspective, Nvidia estimates that one such center could cost on the order of $50 billion, both in hardware and facility infrastructure.
Situated in Indiana, this would be a monumental economic—and energy—boost to the arm. It has the potential to support tens of thousands of construction and operating jobs with spillover effects across manufacturing and services.
Challenges & Considerations
Community Resistance: As The Washington Post notes, data centers on this scale in states such as Indiana can draw local opposition on the grounds of energy consumption, noise, and environmental strains
Infrastructure Readiness: Securing enough land, availability of power, water, and broadband connectivity—all of which are requirements for a Stargate site—will be paramount. OpenAI has already conducted site visits in other states with great utility collaboration.
Regulatory Environment: State tax credits or expedited permitting processes at the state level may be the tipping point for Indiana’s inclusion in Stargate’s next round of site selection.
Strategic Implications
This shift reflects Stargate’s growing interest in U.S. infrastructure deployment, and may be in both federal, and state, interests in reindustrializing rural and semi-rural communities with next-generation AI infrastructure. Already, the U.S. is the global leader in sheer data center scale. While Indiana’s involvement hasn’t been heralded in the press, the state fits the criteria of being a viable candidate:
It has utilities and real estate available.
It is underutilized economic zones where job creation would be significant.
And, it may offer better policy incentives than metro areas.
OpenAI Indiana Data Center Project Factsheet
Project Overview
Initiative: Project Stargate – 1 GW data center evaluation in Indiana
Investment Scale: Part of $500B AI infrastructure expansion over 4 years
Strategic Shift: Focus on U.S. heartland vs. international locations
Project Stargate Background
Launch: January 2025
Partners: OpenAI, SoftBank, Oracle, MGX
Immediate Investment: $100B deployed, now at $500B
Current Sites: Abilene, Texas (4.5 GW capacity operational)
Indiana Opportunity
Facility Scale: 1 GW data center (10x larger than typical hyperscale centers)
Estimated Cost: ~$50B (including hardware and infrastructure)
Competition: 16 states expressing interest, Indiana under consideration
Economic Impact Potential
Jobs: Tens of thousands in construction and operations
Ripple Effects: Manufacturing and services sector growth
Infrastructure: Massive energy and economic injection
Key Challenges
Community Resistance: Local concerns over energy consumption and environmental impact
Infrastructure Requirements: Land, power grid, water access, broadband connectivity
Regulatory Hurdles: Need for state incentives and streamlined permitting
Indiana Advantages
Available real estate and utility infrastructure
Underutilized economic zones for high-impact job creation
Potential for favorable policy incentives vs. metro markets
Alignment with federal reindustrialization goals
Status: Evaluation phase – no final commitment announced
