Texas may be the future of AI.
From the historic development of the integrated circuit in 1958 to its seizure of leadership in AI infrastructure, Texas has consistently demonstrated an ability to adapt and thrive in the rapidly evolving landscape of technology. One of the next major chapters in the Texas tech story is being written today in Abilene, the emerging anchor of a $500 billion initiative announced at the White House just days into the Trump Administration. Unveiling “Stargate,” President Trump called it “the largest AI infrastructure project in history.”
Spearheaded by OpenAI, Oracle and SoftBank, Stargate seeks to establish a network of state-of-the-art data centers capable of supporting the next generation of AI systems. Larry Ellison, executive chairman of Oracle, revealed Abilene as the project’s initial site location.
Abilene, officials say, was chosen due to its unique combination of resources and incentives. The city’s access to Texas’ deregulated energy market provides competitive electricity pricing essential for hosting power-hungry, large-scale data centers. In addition, Abilene offers ample land and favorable tax incentives that reduce operational costs.
“Stargate Site 1” is being built at Abilene’s Lancium Clean Campus, under development since 2021 as a partnership between Taylor County, the City of Abilene and Lancium, a Houston-based energy technology and infrastructure company.
“We chose Abilene for our second Clean Campus because of its ideal location, proximity to abundant wind and solar generation, high-quality workforce, and the opportunities to grow in the future,” said Michael McNamara, Lancium’s co-founder and CEO.
The Lancium Clean Campus spans over 1,100 acres and has secured 1.2 GW of power, with 200 MW deployed as of January 2025, allowing it to support computing applications essential for AI development. The campus is equipped with Lancium’s proprietary Smart Response technology, which adjusts power consumption to enhance grid reliability while leveraging low-cost renewable energy sources like wind and solar. The site includes up to 10 buildings currently under construction, each measuring approximately 500,000 sq. ft., with plans to expand to 20 buildings in the future.
“We’re thrilled to strengthen our commitment to Texas.”
— Yolande Piazza, VP of Financial Services, Google Cloud
By hosting one of the world’s most sophisticated AI infrastructures, Abilene has thus positioned itself to become a hub of AI research, development and entrepreneurship. While Austin remains the crown jewel of Texas technology, Abilene’s rise reflects a strategic shift in that big infrastructure goes where the energy and space are. Right now, that means West Texas.
“Abilene has demonstrated how collaboration and strategic planning can position a community to take on significant projects,” says Misty Mayo, president and CEO of the Development Corporation of Abilene. “Project Stargate builds upon these efforts and opens new opportunities for growth. This isn’t just about data centers; it’s about building a future where Abilene powers the AI revolution.”
The New Wave of AI Computing Power
Google is among other giants of the tech world that are doubling down in Texas. In August of 2024, the company announced a $1 billion expansion of its Dallas-area data centers in Midlothian and Red Oak, thus reinforcing Texas as a vibrant hub for cloud computing and AI infrastructure. The announcement signified a rapid expansion of the company’s Dallas Cloud Region, launched in June of 2022 and broadened the following year.
“We’re thrilled to strengthen our commitment to Texas,” said Yolande Piazza, vice president of financial services at Google Cloud. “Expanding our cloud and data center infrastructure in Midlothian and Red Oak reflects our confidence in the state’s ability to lead in the digital economy. Together with Texas’ talent and vibrant customer base, we’ll meet growing demand for Google Cloud and AI to help shape the future of technology.”
In tandem with the data center expansion, Google announced long-term power purchase agreements with Houston-based Engie and three other providers for 375 MW of solar energy capacity to help power its Texas operations. The company says contracts with an array of energy partners have helped to bring online more than 2,800 MW of new wind and solar projects throughout Texas.
In addition to its Dallas Cloud Region, Google has offices in Austin, Dallas and Houston.
In 2024, the company announced plans for a new Austin tech hub, expected to create 1,000 jobs in engineering, data science and project management. The company says its investments in Texas now total more than $2.7 billion.
Blazing a New Trail
Just as Texas Instruments forged the early development of the microchip, research with potentially revolutionary impacts continues apace in Texas. In October 2024, the MATRIX AI Consortium at The University of Texas at San Antonio (UTSA) announced receipt of a $4 million grant from the National Science Foundation to fund a project to advance research into neuromorphic computing, an approach to AI that opens myriad new possibilities by mimicking the structure and function of the human brain. As the first national lab of its kind, the consortium’s Neuromorphic Commons (THOR) project will provide remote access to large-scale neuromorphic platforms.
By opening the door to researchers from around the U.S., THOR aims to accelerate advances in AI and neuroscience by democratizing access to brain-inspired computing systems. It also positions UTSA as a leader in neuromorphic computing.
“We plan to design a national hub for open access to large-scale neuromorphic platforms through close-knit industry partnerships,” said Dhireesha Kudithipudi, the project’s principal investigator. “The field is at a pivotal moment, and ensuring access to a broader group of researchers is critical at this stage. This initiative reflects a community-driven approach, shaping a framework designed by and for the community.”
In the fall semester of 2025, UTSA will launch the College of AI, Cyber and Computing, billed as the first stand-alone college in the U.S. dedicated to these crucial, converging fields. The new college is set to consolidate UTSA’s tech programs into four specialized departments for computer engineering and artificial intelligence, computer science, information systems & cybersecurity and statistics and data science.
“This college,” says UTSA President Taylor Eighmy, “is at the epicenter of digital convergence, driving workforce development and transdisciplinary innovation.”
