OpenAI Pitched White House on Unprecedented Data Center Buildout

OpenAI has pitched the Biden administration on the need for massive data centers that could each use as much power as entire cities, framing the unprecedented expansion as necessary to develop more advanced artificial intelligence models and compete with China.

Following a recent meeting at the White House, which was attended by OpenAI Chief Executive Officer Sam Altman and other tech leaders, the startup shared a document with government officials outlining the economic and national security benefits of building 5-gigawatt data centers in various US states, based on an analysis the company engaged with outside experts on. To put that in context, 5 gigawatts is roughly the equivalent of five nuclear reactors, or enough to power almost 3 million homes.

OpenAI said investing in these facilities would result in tens of thousands of new jobs, boost the gross domestic product and ensure the US can maintain its lead in AI development, according to the document, which was viewed by Bloomberg News. To achieve that, however, the US needs policies that support greater data center capacity, the document said.

Altman has spent much of this year trying to form a global coalition of investors to fund the costly physical infrastructure required to support rapid AI development, while also working to secure the US government’s blessing for the project. But the details on the energy capacity of the data centers Altman and OpenAI are calling for have not previously been reported.

“OpenAI is actively working to strengthen AI infrastructure in the US, which we believe is critical to keeping America at the forefront of global innovation, boosting reindustrialization across the country, and making AI’s benefits accessible to everyone,” a spokesperson for OpenAI said in a statement provided to Bloomberg News.

The push comes as power projects in the US are facing delays due to long wait times to connect to grids, permitting delays, supply chain issues and labor shortages. But energy executives have said powering even a single 5-gigawatt data center would be a challenge.

Joe Dominguez, CEO of Constellation Energy Corp., said he has heard that Altman is talking about building 5 to 7 data centers that are each 5 gigawatts. The document shared with the White House does not provide a specific number. OpenAI’s aim is to focus on a single data center to start, but with plans to potentially expand from there, according to a person familiar with the matter.

“Whatever we’re talking about is not only something that’s never been done, but I don’t believe it’s feasible as an engineer, as somebody who grew up in this,” Dominguez told Bloomberg News. “It’s certainly not possible under a timeframe that’s going to address national security and timing.”

Read More: Constellation CEO Says US Should Copy China to Meet AI Power Use

The US has a total of 96 gigawatts of installed capacity of nuclear power. Last week, OpenAI’s biggest investor, Microsoft Corp., struck a deal with Constellation in which the nuclear provider will restart the shuttered Three Mile Island facility solely to provide Microsoft with nuclear power for two decades.

In June, John Ketchum, CEO of NextEra Energy Inc., said the clean-energy giant had received requests from some tech companies to find sites that can support 5 GW of demand, without naming any specific firms. “Think about that. That’s the size of powering the city of Miami,” he said.

That much power would require a mix of new wind and solar farms, battery storage and a connection to the grid, Ketchum said. He added that finding a site that could accommodate 5 GW would take some work, but there are places in the US that can fit one gigawatt.

--With assistance from Dina Bass and Mark Chediak.

To contact the reporter on this story:
Shirin Ghaffary in San Francisco at sghaffary@bloomberg.net

To contact the editors responsible for this story:
Lynn Doan at ldoan6@bloomberg.net

Seth Fiegerman, Sarah Frier

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