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Analysis and Environment

Trump-backed Stargate Project could strain the US energy grid

The Stargate Project aims to build huge data centres for AI development – but the details remain murky, and it is still unclear exactly how this might impact the energy future of the US

By Jeremy Hsu

23 January 2025

OpenAI CEO Sam Altman speaks at the White House in Washington DC on 21 January 2025

AARON SCHWARTZ/POOL/EPA-EFE/Shutterstock

This week, OpenAI and other tech companies joined US president Donald Trump at the White House to pledge a private investment of half a trillion dollars in US data centres over the next four years. The “Stargate Project” could power an ambitious expansion of AI technology – with repercussions for the US electricity grid and the country’s energy future.

The Stargate announcement comes as North America has been experiencing surging electricity demand in recent years. The grid is already straining to keep…

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