OpenAI raises AI infrastructure spending to $750B, launches $20B Georgia data center project

OpenAI Increases AI Infrastructure Spending to $750 Billion

OpenAI announced Wednesday that it will raise AI infrastructure spending to $750 billion through 2030, representing a 25% increase from its earlier estimate of roughly $600 billion this year, according to The Wall Street Journal 1

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. The escalation comes as new deals with cloud-computing providers drive the higher figure and as the company's Stargate data center project appears to have stalled. This massive capital commitment underscores the computing resources required to train and operate advanced AI models as demand for AI computing continues to climb across the industry.

Project Camellia Marks OpenAI's First Self-Designed Data Center

The centerpiece of this AI expansion strategy is Project Camellia, a $20 billion data center campus in Effingham County Georgia, located within the Savannah Gateway Industrial Hub about 45 minutes northwest of Savannah 1

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. This OpenAI data center project spans 1,400 acres and represents the company's first venture as principal designer and builder of its own facility, a significant shift from leasing chip capacity from providers such as Oracle and Amazon Web Services. Sachin Katti, OpenAI's vice president of compute strategy, reportedly said the fully built facility will likely cost more than $30 billion, with the company currently seeking partners to finance and develop the remaining phases 2

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. The Georgia data center will draw at least 3.2 gigawatts of power from Georgia Power, with generating capacity expected to become available between 2028 and 2032 1

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Power Demands and Environmental Impact Raise Questions

The 3.2 gigawatts of electricity contracted from Georgia Power rivals the power consumption of roughly 2.4 million U.S. homes, highlighting the scale of compute infrastructure needed for AI development 2

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. Regulatory filings reveal that most of the new capacity will come from natural gas, with Georgia Power planning to build or buy approximately 5.8 gigawatts of natural gas generating capacity—more than doubling the utility's natural gas fleet 1

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. Neither OpenAI nor Georgia Power has specified exactly how Project Camellia will be powered, raising concerns about environmental impact similar to those faced by xAI's Colossus data center in Memphis, which has been accused of running dozens of unpermitted natural gas turbines 1

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Community Engagement and Financial Commitments Shape Local Impact

OpenAI is positioning the Georgia data center as a model for community engagement amid growing public resistance to data center construction across the political spectrum 3

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. The company committed to paying the full cost of infrastructure and electric-service costs for the new facility, ensuring that electricity rates for existing Georgia Power customers will not increase 4

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. Under a 25-year demand response agreement, OpenAI will reduce power consumption by up to 1 gigawatt during periods of high demand on the grid before residential customers are affected—among the largest single-facility demand response commitments in the country 1

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. The facility will use closed-loop cooling with minimal water usage to address concerns about resource consumption 3

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Tax Incentives and Local Benefits Package

OpenAI is receiving a 50% property tax abatement for 15 years from Effingham County, though the company expects to become the county's largest taxpayer, contributing hundreds of millions of dollars in state and local taxes over time 1

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. The county projects that revenue flowing from the facility could cut property tax bills for a typical homeowner by roughly 40% 4

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. OpenAI pledged $80 million in community benefits targeting education, public safety, health care, workforce development, housing, and local small business support 3

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. Additionally, the company will provide up to $71 million in Codex credits for use by every student at Georgia colleges and technical schools, and pay for an independent auditor to verify compliance with its commitments 3

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Strategic Shift in Infrastructure Approach

The self-designed data center reflects a strategic shift for OpenAI as it refines its global infrastructure pipeline. Katti said the company has gained valuable experience after several generations of AI infrastructure projects, improving facility layouts, networking architecture, and standardized system designs to reduce costs while accelerating deployment schedules 2

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. OpenAI intends to release standardized blueprints covering data centers, networking systems, and hardware, allowing future campuses to come online more quickly 2

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. The company recently stepped back from selected projects in the United Kingdom and Norway and paused expansion at its flagship Stargate campus in Texas to concentrate resources on larger developments with greater long-term strategic value 2

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. CEO Sam Altman is expected to visit Washington next week to brief the Trump administration and members of Congress on next-generation AI models before the country's AI regulatory framework evolves 2

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