What We Know About Stargate, Big Tech’s Data Center Build-Out

Current conditions: Torrential rains triggered landslides in Indonesia that left at least 17 people dead • Temperatures could reach 115 degrees Fahrenheit in parts of Australia as an extreme heat wave lingers over half the country • The forecast is looking good for some much-needed rain in Southern California this weekend.

THE TOP FIVE

1. Winter storm triggers first-ever blizzard warning along Gulf Coast

A truly historic winter storm slammed Gulf Coast states yesterday, bringing record-breaking snowfall, hazardous ice, and dangerously low temperatures to a region not accustomed to this kind of weather. The system triggered the first-ever blizzard warning along the Gulf Coast. Roughly 4 inches of snow fell in Houston, Texas, the highest one-day snow event ever recorded for the city. About 9 inches blanketed New Orleans, shattering the previous one-day snow record, set in 1963, of 2.7 inches. Milton, Florida, recorded more than 8 inches of snow, double the 1954 state record. An early estimate from AccuWeather puts the economic losses from this storm at somewhere between $14 billion and $17 billion, including “the cost of damage and repairs from burst water pipes, as well as the increased demand for heating and energy.” At least 10 people are known to have died, and tens of thousands are without power.

A snowy Bourbon Street in New Orleans.Michael DeMocker/Getty Images

This extreme winter weather is being driven by the polar vortex, which is a blob of low-pressure and cold air that circulates around the poles. As the National Weather Service explains, “many times during winter in the northern hemisphere, the polar vortex will expand, sending cold air southward with the jet stream.” Researchers are looking into how human-caused climate change is affecting the polar vortex. NOAA stratosphere expert Amy Butler said changes in surface temperature and pressure that result from sea ice loss could alter the atmospheric waves that bump up against the polar vortex. “So the idea would be that even though you have an overall warming trend, you might see an increase in the severity of individual winter weather events in some locations,” she said.

2. Tech giants launch ‘Stargate’ project to build AI data centers

President Trump yesterday announced up to $500 billion in private sector investment to build dozens of AI data centers and their related energy infrastructure across the U.S. OpenAI, SoftBank, and Oracle are among the tech companies combining their efforts under a new joint venture called Stargate. The company will start with a $100 billion commitment, potentially rising to $500 billion over four years. Its first data center will open in Texas. The Associated Pressnoted that the Stargate project has been in the works for some time. There was no mention of how these data centers would be powered, whether by renewables or fossil fuels. “They have to produce a lot of electricity, and we'll make it possible for them to get that production done very easily at their own plants if they want,” Trump said. “They’ll build at the plant, they’ll build energy generation and that will be incredible.” Last month the Department of Energy issued a report finding that data centers consumed about 4.4% of all of America’s electricity in 2023, and that could reach 12% by 2028.

3. Microsoft buys carbon credits through Amazon forest restoration

Somewhat relatedly, tech giant Microsoft signed a deal to buy millions of carbon credits from a Brazilian startup called Re.green that restores the Amazon rainforest. The purchase, which the Financial Times estimates could be worth $200 million, is meant to offset the company’s growing AI emissions. Microsoft’s emissions grew by 30% in 2023 compared to 2020. It has been investing heavily in emissions solutions including direct air carbon capture, nuclear power, carbon-absorbing rocks, and biochar. The new Re.green deal is for 3.5 million credits over 25 years.

4. Trump renews debate on California water supplies

In the same speech announcing the AI data center investments, President Trump also said he would issue an executive order to make more water available in California. The comment came as the president discussed the ongoing fire crisis in the state. On Monday he issued a memorandum titled “Putting People Over Fish: Stopping Radical Environmentalism to Provide Water to Southern California,” in which he directed the Interior and Commerce secretaries to “route more water from the Sacramento-San Joaquin Delta to other parts of the state.” The director of California’s Department of Water Resources told CalMatters that Trump’s ideas for water management would “do nothing to improve current water supplies in the Los Angeles basin.”

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5. Trump ends LNG pause

President Trump yesterday officially ended the Biden administration’s pause on liquefied natural gas export permits. According toReuters, the decision “could pave the way for almost 100 million metric tons per annum of additional LNG by 2031 by projects that are significantly advanced.” LNG companies applauded the move. Former President Biden issued the pause so that the DOE could study the environmental and economic impacts of LNG exports. The subsequent DOE report found that:

• LNG projects that have already been approved are likely to produce more than enough natural gas to meet global demand,
• China will be the largest LNG importer through 2050.
• Increased LNG exports could raise wholesale domestic natural gas prices by more than 30% by 2050.
• U.S. LNG exports would increase global net emissions.

THE KICKER

Through the end of January, Lyft is giving $1.50 ride credits for every time a customer pays NYC’s new $1.50 rideshare congestion fee.