Nvidia breaks ground on $700M AI supercomputer factory in Fort Worth

Nvidia has begun construction on a manufacturing facility in Fort Worth, Texas, that will produce AI supercomputers domestically for the first time, the company announced at a groundbreaking ceremony Tuesday.

The facility, which Nvidia calls an "AI factory," represents a $700 million investment and has created 800 jobs in the region. According to details first reported by Fox 4 News, the plant will manufacture thousands of advanced AI supercomputers that previously were assembled overseas.

Each supercomputer weighs two tons and costs $4 million to produce. Once manufactured, the systems will be shipped to separate facilities where they process energy into tokens—the fundamental units that AI systems use to generate text, numbers, and other outputs.

Why it matters

The Fort Worth facility marks a significant shift in Nvidia's supply chain strategy, bringing high-value manufacturing back to U.S. soil at a time when semiconductor and AI infrastructure have become national priorities. The investment also arrives as cities nationwide wrestle with the infrastructure demands and community impact of rapidly expanding data center operations.

Addressing environmental concerns

Nvidia CEO Jensen Huang emphasized the facility's energy efficiency at the groundbreaking event, contrasting modern liquid cooling systems with older data center technology.

"The old generation of data centers used a lot of water and cooling tech. Now? It's 100% liquid cooled. There's re-circulation of liquid cooling. Therefore, water usage is extremely low, the energy efficiency is high," Huang said.

He also acknowledged the pace of data center expansion and urged industry players to engage more thoughtfully with local communities. "I know that all these data centers are popping up so fast and changing the shape of these communities we all the data center builders need to be more sensitive to the local community," Huang said.

Local regulatory debate

The facility's opening coincides with growing debate in Fort Worth over data center proliferation. In July, five Fort Worth City Council members signed a letter requesting a temporary moratorium on new data center construction to allow time for developing comprehensive regulations.

Fort Worth currently has four active data centers, one under construction, and four in planning stages. City Manager Jay Chapa told Fox 4 that while Nvidia's manufacturing facility differs from traditional data centers, the city needs balanced policies.

"The moratorium is so we have more time to put in appropriate regulations," Chapa said, while noting that such facilities will be "key to providing the tax base of the future" as cities seek revenue sources beyond residential property taxes.

The Fort Worth City Council is scheduled to vote August 11 on whether to adopt the data center moratorium, which would create a window for drafting guidelines governing future facilities.

Details of the facility and local policy discussions were first reported by Fox 4 News.