Abilene, Texas, was pitched as a winner in one of the world's largest AI data center expansions, with leaders touting thousands of jobs, more tax money, and a broader economic boost.
Many residents say the clearest change has been rising housing costs, along with a feeling that the project's gains have yet to reach them.
What's happening?
The Stargate Project broke ground outside Abilene in 2024, replacing ranchland near long-established homes with a vast data center campus. In a KUT News report published by Houston Public Media, the development — backed by companies including Oracle and OpenAI — was framed as a major opportunity for the region.
At a White House press conference in January 2025, President Donald Trump introduced Stargate and said it was something people would "hear a lot about in the future." Oracle representatives told KUT News the project brought 9,000 construction jobs and is expected to create 1,000 permanent jobs, while the Abilene City Council approved an 85% tax abatement and Oracle said the city could still collect an estimated $30 million each year.
People living near the site say the downsides have been hard to ignore. Lexi Smith, whose home is close to the construction, said increased traffic, damaged roads, and environmental worries have changed the area around her family's house. "We got taken, we got robbed," Smith said.
Not every business in Abilene is seeing the same impact. Regan Vanderweele, an employee at Grain Theory brewery, said, "I've definitely seen a big intake of customers coming from out of town and because of the data center specifically."
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Others told the outlet they had noticed little benefit.
Why does it matter?
Among the concerns surfacing in Abilene, housing has become the biggest one. Diana Luna, a self-described "techie" running for Texas state representative, said the city was already short on housing before thousands of workers showed up. "If we're supposed to be in this economic boom, where is the money?" Luna said.
Evidence of that strain is spreading across the city. In June, Abilene Christian University said more than 100 incoming students still lacked housing for the fall semester, and Zillow data cited in the report showed average rent in Abilene at nearly $2,600 a month — higher than Austin.
Because they rely on large banks of servers and extensive cooling equipment, AI data centers place heavy demands on the power grid, and many also consume substantial amounts of water. AI can provide real benefits, including helping utilities better predict demand and bring on cleaner energy sources, but fast expansion can also stress local infrastructure, push up energy prices, deepen water-use concerns, and create new risks related to misuse, security, and uneven economic effects.
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For renters and vulnerable families, those pressures can show up quickly. Michael Prado, a case manager at Abilene Hope Haven, told KUT News he has seen more families seeking shelter after being priced out of housing.
What's being done?
Backers of the project say the long-term upside could still materialize.
In a promotional video, Misty Mayo, CEO of the Development Corporation of Abilene, said, "New tax revenue funds new roads. New tax revenue makes a new grocery store interested in expanding into your community, because now they can make money."
Some local institutions are making changes. Abilene Christian University said it plans to bring a former residence hall back into use — after it had once been slated for demolition — to house students affected by the rental shortage.
People working on housing issues locally say the city also needs near-term solutions, including more attainable rentals, better preparation for large waves of incoming workers, and help for families facing eviction. Prado said it used to take just over a month to place someone in housing; it can take up to six months.
Smith rejected the tradeoff outright: "There's no amount of money worth it. None."
Prado said, "I hate that we're getting the calls, that people are getting evicted ... I hate when single moms are calling."
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