Oracle and OpenAI Abandon Texas Data Center Expansion Plan

Oracle and OpenAI have abandoned plans to expand a flagship artificial intelligence (AI) data center in Texas, USA.
Insiders said that due to the long-term stalemate in financing negotiations and changes in OpenAI’s own needs, the project was ultimately put on hold.
This project is part of the Stargate program, a joint venture between SoftBank Group, OpenAI, and Oracle with a total investment of up to $500 billion and a total capacity of 10 gigawatts. US President Trump announced the project in January 2025.
This plan adjustment highlights the complexity of building AI data centers. Such projects typically have investment scales of tens of billions of dollars and require coordination and support from multiple partners.

Last September, the aforementioned companies announced plans to further expand their data center capacity by up to 600 megawatts near the existing Stargate core campus in Abilene, Texas.
However, a source familiar with the situation stated on Friday that the originally planned increase in computing power capacity will be taken over by other data center parks under construction.
At present, there are a total of 8 buildings in Abilin’s data center park, operated by Oracle Cloud Infrastructure Department, of which 2 buildings have already been put into operation. Sources added that OpenAI and Oracle’s overall plan to build an additional 4.5 gigawatts of data center capacity is still underway.
In recent years, large technology companies have invested hundreds of billions of dollars in the data center field to support generative artificial intelligence services such as ChatGPT and Copilot, which require extremely large computing resources.
At the same time, the breakdown of negotiations between Oracle and OpenAI has created an opportunity for Meta. According to reports, Meta is considering leasing an expanded data center project located in Abilene, Texas from developer Crusoe, with Nvidia assisting in facilitating the relevant negotiations.