Is Stargate Coming to San Angelo?

Capital Brief reported:

Trump said the new company (Stargate) will invest US$500 billion in AI infrastructure, creating over 100,000 jobs, in what he called "the largest AI infrastructure project by far in history, and it's all taking place right here in America". 

(Oracle's Larry) Ellison said 10 data centres are under construction in Texas, with 10 more planned.

The first Texas AI data center is the Lancium site in Abilene, originally developed for bitcoin mining.  Hanwha Solutions was an early backer of the project which leveraged our plentiful supply of renewable energy.  The Lancium Project shifted to Artificial Intelligence in a deal with Crusoe Energy Systems.  It's now part of Stargate.

West Texas is hot for energy projects to support AI and its voracious power needs.  The Concho Valley has both solar and wind energy generation.  San Angelo will soon have a battery storage facility on 28th Street.  The Zeppelin Energy Storage project is private equity backed.  City Council provided a $2.65 million tax break for Peregrine Energy (consent agenda - 9-3-24) before saying it had no funds to keep retiree health insurance benefits static (regular agenda - 11-5-24).  

The project will provide virtually no jobs, normally a requirement for economic development incentives.

Council proved to the big money boys it can play, i.e. help them achieve their investment hurdle rate.  Could San Angelo be in Stargate's sights?  OpenAI CEO Sam Altman noted:

AI is a little bit different from other kinds of software in that it requires massive amounts of infrastructure, power, computer chips, data centers, and we need to build that here and we need to be able to have the best AI infrastructure in the world to be able to lead with the technology and the capabilities.

CBS News reported:

Stargate investment will be directed toward constructing data centers to support AI development, according to the announcement. Already, there are data centers under construction in Texas, with the first one located in Abilene, Oracle's Ellison said at the press conference. 

The goal is to construct 10 data centers initially, with plans to expand to 20 locations of about half a million square feet each, he added.

City Council approved the annexation of 1,200 acres north of town.  The land is city owned. 

 

A one million square foot data center takes up roughly 23 acres.  A half million sized one requires 11.5 acres.

Abilene's Lancium site is 1,100 acres and 800 of that came via annexation.  

The 1-21-25 item came from Council's executive session so the public did not get to hear any discussion or deliberation.  Council approved the annexation under item "Ai."  How often does an agenda numbering convention line up with a business use case?

West Texas is hot for voracious, energy sucking AI.  Will Surprising San Angelo play a role in Stargate, directly or indirectly (energy supply)?  Time will reveal if yet another "boom or bust" commodity is headed our way.

If they do come, I hope Council keeps enough tax revenue to keep promises made to retired employees and maybe reverse the recent harms done to that group of people.

Update 1-26-25:  A California battery storage facility caught fire.  Some characteristics of that project are different than Zeppelin, however it highlights the need for an appropriate fire response, something Tom Green County is not equipped to handle.

Update 1-27-25:  If Stargate AI doesn't pan out the Concho Valley may be a candidate for a SpacePort.  The Texas Space Commission approved a site selection grant for the thirteen county Council of Governments.

Update 3-4-25:  It may or may not be Stargate AI but City Council just approved the sale of 350 acres of land to Skybox Data Centers LLC for $50,000 per acre.  Skybox helps clients curate their best data center solution.