Data Center
OpenAI and Oracle have abandoned plans to expand a major artificial intelligence data center in Texas after negotiations stalled over financing and shifting infrastructure requirements, according to a report by Bloomberg News.
The proposed expansion was linked to the Stargate initiative — a large-scale AI infrastructure project valued at up to $500 billion and designed to deliver up to 10 gigawatts of computing capacity. The project involves several major technology players including SoftBank Group and was announced in January 2025 by Donald Trump.
In September, OpenAI and Oracle had outlined plans to add up to 600 megawatts of additional data center capacity near the flagship Stargate campus in Abilene, Texas. That expansion will now be fulfilled at another data center campus under development, according to a source familiar with the matter.
The Abilene facility currently consists of eight buildings operated by Oracle Cloud Infrastructure, with two already in operation. Plans to build an additional 4.5 gigawatts of data center capacity as part of the broader Stargate program remain unchanged.
Technology companies have been investing heavily in data center infrastructure to support generative AI services such as ChatGPT and enterprise AI tools, which require massive computing power.
The stalled expansion discussions have reportedly opened the door for Meta Platforms to explore leasing the planned expansion site in Abilene from data center developer Crusoe.
Nvidia is also closely involved in the project, as the facilities rely on its AI processors. According to the report, Nvidia played a role in discussions around the expansion to ensure that its chips, rather than those from rival Advanced Micro Devices, would power the data center infrastructure.
The developments highlight the rapidly evolving requirements of AI infrastructure projects, where financing, power availability and technology choices are continually shifting as companies scale their AI ambitions.
The proposed expansion was linked to the Stargate initiative — a large-scale AI infrastructure project valued at up to $500 billion and designed to deliver up to 10 gigawatts of computing capacity. The project involves several major technology players including SoftBank Group and was announced in January 2025 by Donald Trump.
In September, OpenAI and Oracle had outlined plans to add up to 600 megawatts of additional data center capacity near the flagship Stargate campus in Abilene, Texas. That expansion will now be fulfilled at another data center campus under development, according to a source familiar with the matter.
The Abilene facility currently consists of eight buildings operated by Oracle Cloud Infrastructure, with two already in operation. Plans to build an additional 4.5 gigawatts of data center capacity as part of the broader Stargate program remain unchanged.
Technology companies have been investing heavily in data center infrastructure to support generative AI services such as ChatGPT and enterprise AI tools, which require massive computing power.
The stalled expansion discussions have reportedly opened the door for Meta Platforms to explore leasing the planned expansion site in Abilene from data center developer Crusoe.
Nvidia is also closely involved in the project, as the facilities rely on its AI processors. According to the report, Nvidia played a role in discussions around the expansion to ensure that its chips, rather than those from rival Advanced Micro Devices, would power the data center infrastructure.
The developments highlight the rapidly evolving requirements of AI infrastructure projects, where financing, power availability and technology choices are continually shifting as companies scale their AI ambitions.
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