North Carolina could handle the huge Stargate AI data center despite its size, power requirements and the need to produce a workforce of more than 40,000 people, says John Boyd Jr., principal of the well-known corporate site consultancy The Boyd Company.
In a Q&A, Boyd discussed the $100 billion to $500 billion Stargate project disclosed last week by President Trump. Partners include OpenAI, Oracle and Softbank.
WRAL TechWire: Could NC handle a project on this scale. Sounds like it could be the largest project ever chased by NC — something on the scale of Amazon HQ2 without all the office workers?
Boyd: North Carolina and its highly regarded economic development pros have proven time and again their success in getting huge economic development deals over the finish line. While data centers don’t usually generate the types of non-construction jobs other industries do, they bring in enormous capital investments that result in expanding state and local tax revenue.
Data centers are also less vulnerable to swings in the national economy versus many other traditional types of employers in terms of layoffs and relocations. Once they’re in, they’re in!
They also become a major part of the state high tech ecosystem – helping to attract technology companies utilizing AI and quantum computing – today’s holy grail of economic development.
WRAL TechWire: Does NC have the electrical grid necessary? Does it have the water?
>> Scale of Stargate project is astounding, could mean more than 40,000 jobs
Boyd: Megasites today are often the first choice by major datacenters because of the energy infrastructure, site readiness and location. Just look at Microsoft sitting on the Person County megasite in North Carolina, Meta’s major deal last month on the Franklin Farm megasite in Louisiana and Amazon Web Services recent siting on the Madison County megasite in Mississippi. Engineers will study this closely and work with the power providers to quickly determine if a site can accommodate the specific power demands.
One important thought here: Stargate is a four-year program. These are different than most typical data center projects where existing supply is paramount. This gives time for regional players like Duke Energy, the megasites, power and water authorities and local elected officials to work with the State and the Feds to have the necessary infrastructure in place.
WRAL TechWire: Could one of NC’s megasites handle such a project?
Boyd: Yes, I believe the portfolio of shovel-ready megasites in North Carolina, well known in the site selection world and by executives are an advantage for the state.
WRAL TechWire: AI appears to be the future. Could project(s) like this “reindustrialize” the US or is that hype from OpenAI?
Boyd: It is not hype. AI is revolutionizing virtually every industry – healthcare, banking, transportation, manufacturing, agriculture, communications, logistics, retail, film/ multimedia/entertainment, etc.
President Trump, a natural salesman, embraces this role of our nation’s “economic developer in chief,” recruiting global AI and data center investment to the US. We see this with his recent recruitment of SoftBank and with Dubai-based property developer DAMAC’s multibillion dollar data center investments in the U.S. I think Trump and his administration view AI as the new global arms race — critical to maintaining our business competitiveness and our national security. It also is tied to energy. Producing more energy is a cornerstone to his political agenda.
North Carolina will feel the impact of AI throughout all regions of the state — the life sciences industry in the RTP and along the 1-40 corridor, the banking industry in Charlotte, manufacturing throughout the state, the film industry in Wilmington, Southport and Asheville, the ports at Wilmington and Morehead City and the lives of people and businesses throughout the state.
Another interesting industry for AI-related economic development is giving a boost to the autonomous vehicle industry. Elon Musk ‘s role and influence in the White House should also be a driver for self-driving cars and trucks, UAVs and AUVs. NC is already home to a federally designated autonomous driving research and development center and North Carolina A&T University and North Carolina State University have highly regarded AV programs.
WRAL TechWire: Data centers are tremendous consumers of power and really don’t employ that many people. So many of these jobs would be for construction and development? Are they worth the effort?
Boyd: They are totally worth the effort. Beyond the sheer numbers in construction and operations, these data centers will be a catalyst for the attraction of other high-paying tech sectors that will be reliant on AI applications. They will also further enhance the North Carolina “brand” as a location of choice for new and leading edge technologies like AI.
Rick Smith is a freelance writer based in Raleigh. He is retired editor and co-founder of WRAL TechWire. You can contact him via email at: rickrosssmith@gmail.com. Follow him at LinkedIn where he posts about technology on a regular basis.