Stargate, AI, and the Coachella Valley

$500B for AI Infrastructure—Can the Desert Compete?

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Sat & Sat GPT
January 22, 2025 • Estimated Reading Time: 9 minutes

With $500 billion fueling the ambitious Stargate Project, could the Coachella Valley stake its claim—or is this an idea only a certain billionaire can turn into reality?

Overview: A Vision of Desert AI Innovation

When news broke about Stargate, a $500 billion AI infrastructure investment program, I don’t know about you, but my imaginations sparked with the possibilities: Data centers powered by the mojave sun, an AI talent hub nestled in the desert, and a chance for the Coachella Valley to finally diversify its economy—these ideas sounded revolutionary.

But let’s be real: the hurdles are mountainous. Between bureaucratic inertia, infrastructure gaps, and the Valley’s laid-back desert culture, this vision feels more like a “Wish upon a Stargate” than a truly reach for the stars moment.

But then there’s Larry Ellison. Tech magnate, tennis enthusiast, and the mastermind behind Oracle, Ellison owns a sprawling 200-acre sanctuary in Rancho Mirage that epitomizes desert luxury. His influence in the Valley is undeniable, and if anyone could champion a local Stargate initiative, it’s him. With his proximity to decision-makers and funding sources, a slice of that $500 billion investment could feasibly land here. Yet, without Ellison at the helm, it’s hard to imagine the Coachella Valley competing with established tech hubs. His leadership isn’t just helpful—it’s essential.

Agenda

  1. Why Coachella Valley & Stargate.

  2. The Immense Challenges.

  3. Data Centers.

  4. Larry Ellison.

The AI Dream: What Makes the Valley a Contender

1. Strategic Geography and Space

The Coachella Valley offers what many tech hubs can’t: space. The wide-open desert could host sprawling data centers, while the 350+ days of sunshine make solar energy a logical power source for AI infrastructure. Proximity to Los Angeles, Phoenix, and San Diego adds to its strategic allure.

2. A Community with Hidden Assets

The Valley’s mix of semi-retired executives, a growing entrepreneurial community, and educational institutions like CSUSB and UCR Palm Desert offers a foundation for building an AI hub. However, tapping into this potential requires deliberate effort, substantial resources, and a leader with the vision to unify these disparate assets.

3. Larry Ellison’s Local Footprint

Ellison isn’t just any billionaire—he’s a tech mogul who’s already heavily invested in the Coachella Valley. His ownership of the Indian Wells Tennis Gardens and his Rancho Mirage spread position him as a key figure in any large-scale local initiative. If anyone could bridge the gap between the Valley’s potential and Stargate’s global ambitions, it’s him.

The Inconvenient Truths: Why This Vision Feels Far-Fetched

1. Bureaucratic and Cultural Resistance

The Coachella Valley isn’t known for moving quickly on large-scale initiatives. Ongoing debates over 4-million-square-feet of warehouse space in Palm Springs illustrate the tension between development and preservation. Scaling up for AI infrastructure would likely face similar pushback from residents who value the desert’s serene vibe.

2. Infrastructure That Needs a Revolution, Not a Tune-Up

Solar energy potential aside, the Valley lacks the high-speed internet, modernized power grid, and water management systems needed for AI infrastructure. These aren’t small gaps—they’re canyons. Addressing them would require massive investment and alignment across local, state, and federal agencies.

3. The Desert Lifestyle

Let’s not forget: people come to the Coachella Valley to slow down, not speed up. Would an AI initiative disrupt the very vibe that makes the desert special? Even Ellison may view the desert as a sanctuary to escape the hustle of the tech world. Without his active support, it’s hard to see this dream gaining traction.

Data Centers

Before we dismiss the Stargate Infrastructure Project in the Coachella Valley entirely, let’s take a closer look at data centers—the possibilities and the challenges that stand in the way.

What Works in Favor of Data Centers in Coachella Valley:

  1. Solar Energy Potential:
    The Valley's abundant sunshine makes it ideal for renewable energy, which is critical for powering energy-intensive data centers. Solar farms could offset electricity demands, lowering operational costs and making the centers more sustainable.

  2. Available Land:
    The region has plenty of wide-open spaces that could accommodate sprawling data centers. This is a key factor compared to more urban tech hubs where land is scarce and expensive.

  3. Proximity to Major Tech Hubs:
    The Valley’s location—close to Los Angeles, Phoenix, and San Diego—provides logistical advantages, whether for transporting equipment or accessing tech talent.

What Prevents the Valley from Hosting Data Centers:

  1. Water Scarcity:
    Data centers require significant amounts of water for cooling systems. The Coachella Valley is already facing challenges with groundwater management, and adding high water-usage facilities could exacerbate the situation. While innovative cooling solutions like air cooling or liquid immersion cooling could reduce water dependence, they may not fully eliminate the need for water.

  2. Infrastructure Limitations:

    • Electric Grid: Even with solar energy, the Valley's grid is not ready to handle the demands of large-scale data centers without significant upgrades. Read: a boatload of money required.

    • Broadband: Reliable and high-speed internet infrastructure is critical for data centers, and the region will require substantial investment to meet those standards. Read: a boatload of money required.

  3. Environmental and Community Concerns:
    Large data centers could alter the desert’s aesthetics and face resistance from residents who value the Valley’s tranquil lifestyle. Noise pollution, visual impact, and increased traffic are major concerns.

  4. Heat Management Challenges:
    The extreme summer temperatures in the Coachella Valley (ofttimes exceeding 120°F) make cooling a significant operational cost. Even with renewable energy, keeping equipment cool in such an environment is a technical and financial challenge.

Are There Workarounds?

  • Dry Cooling Technology: Some newer data centers use dry cooling methods that dramatically reduce water usage. These could make operating data centers in the desert feasible.

  • Partnerships with Renewable Energy Providers: By combining solar energy with battery storage solutions, the Valley could position itself as a leader in sustainable data infrastructure.

  • Edge Data Centers: One possible solution lies in edge data centers—smaller, regional facilities that consume fewer resources than hyperscale centers. These could provide localized AI capabilities without placing overwhelming demands on the Valley’s infrastructure. By starting small, the region could build expertise and capacity over time.

Data Centers: The Bottom Line

The Coachella Valley could technically support data centers with the right innovations in cooling and infrastructure upgrades, but water scarcity is a major constraint. Without significant investment and creative problem-solving, these challenges will always outweigh the region’s advantages.

The Wildcard

Ellison’s influence is the linchpin of this entire conversation. As the founder of Oracle and a key figure in the Stargate Project, his track record of transforming bold ideas into reality is there for all to see. If Ellison decided to champion the Coachella Valley as a pilot site for sustainable AI infrastructure and the recipient of some of that sweet $500 billion, his backing could galvanize public and private entities, streamline bureaucratic processes, and inspire local leaders to think bigger.

Then again, Ellison might see no incentive to act. For him, the Valley could remain what it is for many—a peaceful escape. Without a clear alignment between his vision and the Valley’s potential, Stargate is just wishful thinking.

My Take

The Coachella Valley’s role in the $500 billion Stargate initiative feels improbable—and that’s putting it mildly. The only way this happens is if Ellison and his influence and resources step up to make it a priority. Without that, the region’s infrastructure gaps, bureaucratic hurdles, and cultural resistance make this an impossible climb.

That said, there’s a glimmer of hope in the small but passionate efforts of local entrepreneurs and community builders. Initiatives like SunshineFM’s AI-focused community-building may not rival Stargate’s ambitions, but we’re planting the seeds for a more innovative and collaborative future in the Valley. And who knows? Perhaps those seeds will someday catch the eye of Larry Ellison, Chief US AI Infrastructure Officer and future co-owner of TikTok.

Over to You

  • Could the Coachella Valley stake a claim in the Stargate Project?

  • Is this a concept that only works with a billionaire’s backing?

  • Should the idea of hosting data centers even be pursued if water remains a limiting factor?

  • Could we use the same pitch deck as Cotino?

Get Involved

I'd love to hear your thoughts on the Stargate Project and our chances of getting a piece of that $500 billion pie. Is this a good thing for our region? Our environment?

I didn’t even mention The San Andreas Fault — yikes! Might be a deal-killer right off the bat. What do you think?

Shoot me an email at [email protected] or join the AI Founders Club (and our soon-to-be AI Innovation Studios). Bonus points if you've got thoughts on my 760-SUNSHINE concept.

Researched and written with the help of SatGPT, a Generative AI Agent

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