𝗦𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴 𝗠𝘂𝘀𝘁 𝗚𝗶𝘃𝗲 𝘁𝗼 𝗘𝗻𝘀𝘂𝗿𝗲 𝗦𝘂𝗰𝗰𝗲𝘀𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 $𝟱𝟬𝟬𝗕𝗻 𝗦𝘁𝗮𝗿𝗴𝗮𝘁𝗲 𝗔𝗜 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲

This is an insightful article highlighting the impact this enormous investment will have on the sector. I believe it will materialize in some shape or form, but certain factors must align to make this a reality. In summary: Capital, Power, and Supply.

𝟭. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹
The stakeholders—SoftBank, OpenAI, Oracle, and MGX—have the track record and credentials to raise capital swiftly, not just from their own balance sheets but also from other funding sources. In July 2024, it was estimated that the U.S. alone had $1.17 trillion in private equity dry powder. Data centers are particularly attractive as assets for asset-based securities.

However, as the article highlights, there is $125 billion in capital already committed in the pipeline by hyperscalers to build out their own infrastructure. Will we see a shift in this allocation from their financiers to Stargate? Could these hyperscalers benefit from consolidating their future build plans under Stargate’s umbrella?

𝟮. 𝗣𝗼𝘄𝗲𝗿
We are already encountering constraints with power as more data centers are being built. Behind-the-meter small modular reactors (SMRs) may solve this issue, but they remain a few years away from widespread deployment.

Can Stargate, with government support, flex its muscles to outbid competitors and secure the power access necessary to meet its needs?

𝟯. 𝗦𝘂𝗽𝗽𝗹𝘆
Data center projects are all vying for the same supply of supporting infrastructure. Project delays are becoming increasingly common due to challenges in the supply chain, including access to electrical switching gear, cooling systems, and GPUs required to train AI models.

Stargate is leveraging Oracle’s existing infrastructure in Abilene, Texas, built by Crusoe, Blue Owl Capital Inc., and Primary Digital Infrastructure, with financing from JPMorgan Chase & Co.

Are we already 25% of the way there? 𝙒𝙝𝙖𝙩 𝙧𝙚𝙢𝙖𝙞𝙣𝙨 𝙩𝙤 𝙗𝙚 𝙙𝙤𝙣𝙚—𝙖𝙣𝙙 𝙝𝙤𝙬 𝙢𝙪𝙘𝙝—𝙞𝙨 𝙨𝙩𝙞𝙡𝙡 𝙧𝙚𝙦𝙪𝙞𝙧𝙚𝙙 𝙩𝙤 𝙗𝙧𝙞𝙣𝙜 𝙎𝙩𝙖𝙧𝙜𝙖𝙩𝙚 𝙩𝙤 𝙡𝙞𝙛𝙚?