Officials say data centers can boost local economies. In Abilene, they have spurred a housing crisis
The Stargate data center project in Abilene, Texas, promised economic growth and jobs but has led to significant resident dissatisfaction. While some businesses see increased activity, many locals report worsened quality of life, traffic, and environmental concerns. The influx of workers has caused a severe housing crisis, skyrocketing rent prices, and increased homelessness, prompting calls for local officials to address the unforeseen negative consequences.
The Stargate data center project, backed by OpenAI and Oracle, was announced by President Trump in January 2025, promising to transform Abilene, Texas, into a flagship city for AI infrastructure with thousands of jobs and significant economic returns. The Abilene City Council granted the project an 85% tax abatement, with the Development Corporation of Abilene CEO, Misty Mayo, citing new tax revenue and flourishing local businesses.
However, residents like Lexi Smith, whose family lives across from the construction site, report a drastic decline in their quality of life, citing increased traffic, damaged roads, and worsened air and water quality. Many local businesses, except for a few like Grain Theory brewery, have not seen the promised economic boom. Instead, Abilene is grappling with a severe housing crisis, exacerbated by the influx of Stargate workers.
Diana Luna, a campaigner for Texas state representative, criticizes city leaders for failing to address the housing shortage, which has seen average rent prices jump nearly 50% to $2,600 a month, making Abilene more expensive than Austin. Abilene Christian University reported over 100 incoming students lacked housing, with properties traditionally rented to students being converted. Michael Prado, a case manager at Abilene Hope Haven shelter, confirms a significant increase in families, including data center workers, seeking shelter due to evictions and unaffordable rent, often unable to find housing within HUD's fair market rent calculations. While Prado doesn't blame the data center directly, he emphasizes the urgent need for the city to address the crisis.