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WORLD · AUG 12, 2026

Stargate AI Project Triggers Housing Crisis in Abilene

The Stargate AI data center project in Abilene, Texas, has caused rents to surge 50 percent and created a severe local housing shortage.

The Stargate Project, a massive AI data center campus in Abilene, Texas, has triggered a severe housing crisis and mixed economic results since its January 2025 launch. Supported by Donald Trump and funded by investments from OpenAI and Oracle, the project promised thousands of jobs and local revitalization. To secure the investment, the Abilene City Council provided an 85% tax abatement.

While Oracle reports the creation of 9,000 construction jobs and an estimated $30 million in annual local revenue, the rapid influx of workers has destabilized the local community. Average rents have risen nearly 50% over the last year to approximately $2,600 per month, pricing out students and long-term residents. In June, Abilene Christian University reported that over 100 incoming students lacked housing, and local shelters have seen an increase in families facing homelessness due to evictions.

Local officials remain divided on the project's impact. Misty Mayo, CEO of the Development Corporation of Abilene, claims the project is revitalizing downtown areas and schools. However, residents report damaged infrastructure and a plummeting quality of life as the city struggles to accommodate the sudden population growth.


Reported across 3 outlets
Actors
Donald TrumpOpenAIOracle Corporation

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