Major AI Infrastructure Project Announced for Texas
AI startup Poolside has entered into a strategic partnership with cloud computing specialist CoreWeave to develop a massive 2-gigawatt data center in West Texas, according to reports from industry sources. The facility will be constructed on 568 acres of the Longfellow Ranch, property owned by the Mitchell family which has extensive experience in Texas oil and gas operations.
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Project Horizon: Scale and Construction Timeline
The development, known as Project Horizon, will utilize a “hybrid modular module” design focused on “parallelization rather than sequential construction,” the report states. CoreWeave will serve as anchor tenant for the initial phase, which alone will provide 250MW of power capacity under a 15-year lease agreement, with expansion potential to 500MW. Sources indicate construction is expected to be completed by the first quarter of 2027.
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Energy Strategy and Texas Market Context
The data center will leverage natural gas produced in the Permian Basin, positioning it within Texas’s growing data center market which ranks as the nation’s second-largest according to CBRE analysis. This project joins other major developments in the state, including Meta’s recently announced 1GW data center in El Paso and Fermi’s planned facility in Amarillo with gas pipeline connections for up to 11GW.
Immediate GPU Access and AI Capabilities
While the data center is under construction, the agreement reportedly includes CoreWeave providing Poolside with a cluster of Nvidia GB300 NVL72 systems containing more than 40,000 GPUs beginning in December. Analysts suggest this immediate access to computing power will enable the startup to advance its work in artificial intelligence development.
Leadership Perspectives on the Partnership
Michael Intrator, co-founder, chairman, and CEO of CoreWeave, stated that “Poolside’s approach to foundation models represents exactly the kind of breakthrough work the CoreWeave platform was designed to accelerate. Together, we’re building the performance layer that will define how AI research becomes real-world capability.”
Eiso Kant, co-founder and co-CEO of Poolside, emphasized the importance of vertical integration “from dirt to intelligence” for competing at the technological frontier. He noted the partnership “ensures immediate access to next-generation silicon, enabling us to train multi-trillion parameter models with large-scale reinforcement learning.”
Poolside’s Background and Funding
Poolside, founded in 2023 by Kant and Jason Warner, develops software that reportedly automates coding with sufficient accuracy and security for government use. The company is also working toward artificial general intelligence. According to Bloomberg reports, Poolside is currently conducting a $2 billion fundraising round that would value the company at $14 billion, with the majority of funding reportedly directed toward purchasing 40,000 of Nvidia’s GPUs. The startup previously raised $500 million at a $3 billion valuation in 2024.
Broader Industry Context
This major infrastructure project comes amid significant activity in both the technology and energy sectors. While Poolside (unrelated to the musical group Poolside) advances its AI ambitions, other sectors are seeing similar transformative developments, including major acquisitions in the food and beverage industry and ongoing economic policy discussions that affect technology investments. The media landscape is also evolving with new streaming services launching, while automotive manufacturers navigate current economic challenges.
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