Byte-sized real estate

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Byte-sized real estate

Written by Matthew Calvert
Published: 05-06-2026

Overview

OpenAI must decide how to allocate three new U.S. data centers across Texas, Michigan, and Kansas amid surging AI demand. The company faces tradeoffs between cost, speed to market, and uncertain future utilization. With high fixed costs and limited grid capacity, the decision hinges on balancing long-term economics with flexibility to adapt to fluctuating demand.

Formats available

📄 Peer practice PDF

Case info

Difficulty

Advanced

Case type

Strategy

Industry

Technology and telecommunications

Company

OpenAI

Geography

North America, USA

Additional info

Includes charts and/or data analysis


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