TLDR: OpenAI has established a new AI data center in Denton, Texas, projected to consume 390 megawatts of electricity, nearly doubling the city’s current power usage. This move, aimed at supporting services like ChatGPT, is part of a larger trend of AI infrastructure expansion in Texas, raising concerns about grid strain and environmental impact.
OpenAI, a leading artificial intelligence research and deployment company, has unveiled plans for a significant new AI data center located in Denton, Texas, approximately 40 miles north of Dallas. This ambitious project, announced around July 15, 2025, is designed to bolster the company’s computational capacity, ensuring the continuous operation of its services, including ChatGPT and various developer tools. The initiative comes after OpenAI reportedly faced delays in major feature rollouts earlier in 2025 due to insufficient computing power.
The Denton facility is projected to be a substantial consumer of electricity, with an estimated demand of around 390 megawatts (MW). This figure is nearly double the current power usage of Denton, a city with close to 160,000 residents and two major universities. By 2030, the OpenAI site’s energy footprint could potentially surpass the city’s entire energy consumption, prompting local officials to address the significant management challenges this presents. Concerns have been raised regarding the potential for grid upgrades and a possible increase in electricity bills for residents if power supply struggles to keep pace with demand.
While OpenAI will be the primary user of the Denton site, the facility is technically owned by Core Scientific, a company that has transitioned from bitcoin mining to providing AI infrastructure. Core Scientific is currently in the process of being acquired by CoreWeave, another prominent AI data center provider, in a reported $9 billion deal. Upon completion of this acquisition, CoreWeave will assume control of the Denton hub.
This development is part of a broader surge in data center expansion across Texas, a trend that has already raised alarms among energy planners. The Texas Reliability Entity has voiced concerns about the potential strain on the state’s power grid, which has historically faced challenges, notably during extreme weather events. OpenAI CEO Sam Altman has been actively involved in expanding the company’s infrastructure, aligning with the federal Stargate initiative, a massive $500 billion investment program aimed at funding large-scale AI facilities. The first site under the Stargate program, operated by Oracle in Abilene, Texas, is even larger than the Denton facility, with a capacity of 1.2 gigawatts.
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Beyond energy concerns, the expansion of such facilities also brings environmental considerations, particularly regarding water usage for cooling systems. Experts are calling for innovative solutions to mitigate the carbon footprint of large-scale AI operations, emphasizing the need to balance technological advancement with environmental responsibility. The rapid scaling of AI infrastructure, as exemplified by OpenAI’s latest move, underscores the industry’s growing demands and the critical need for sustainable development practices within the communities that host these power-intensive operations.
