Oracle and OpenAI have canceled plans to expand a flagship AI data center in Abilene, Texas, due to prolonged negotiations over financing and OpenAI's evolving needs. The 600-megawatt expansion, part of the larger Stargate initiative, will instead be built at a different data center campus.
The collapse of these talks has created an opportunity for Meta Platforms to consider leasing the planned Texas expansion site, with Nvidia helping to facilitate discussions. Despite this canceled expansion, OpenAI and Oracle's broader plan to develop 4.5 gigawatts of data center capacity remains on track.
The main topics covered are the canceled Texas data center expansion, the potential involvement of Meta, the role of Nvidia, and the ongoing massive investment in AI infrastructure by tech companies.
Oracle and OpenAI have abandoned plans to expand a flagship artificial intelligence data centre in Texas after negotiations dragged over financing and OpenAI's changing needs, Bloomberg News reported on Friday, citing people familiar with the matter.
The plan is part of the Stargate initiative, a project of âup to $500 billion â and 10 â gigawatts that includes SoftBank Group , OpenAI and Oracle. It was announced by U.S. President Donald Trump in January 2025.
In September, the companies had announced plans for an additional potential expansion of 600 megawatts near the flagship Stargate site in Abilene, Texas.
That capacity will now be fulfilled at one of the other data centre campuses being built, a source â familiar with âthe matter told Reuters on Friday.
The Abilene site has eight buildings, which will be operated by Oracle Cloud Infrastructure, and â two of them are already up and running, the source added. OpenAI and Oracle's plan to develop another 4.5 gigawatts of data centre capacity remains on track.
Technology companies have been pouring billions of dollars into data centres to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power.
The collapsed talks between Oracle and OpenAI created an opening for Meta Platforms âto step in and consider leasing the planned expansion site in Abilene, Texas, from developer Crusoe, according to the Bloomberg News report. Nvidia helped facilitate the discussions.
Oracle â and OpenAI are using Nvidia's AI semiconductors at the Stargate site, and the chip designer stepped in to make sure its products, rather than those of competitor Advanced Micro Devices, would be used to power the expanded data centre, the report said.
Meta declined to comment when contacted by Reuters. OpenAI and Nvidia did not immediately respond to requests for comment.
The plan is part of the Stargate initiative, a project of âup to $500 billion â and 10 â gigawatts that includes SoftBank Group , OpenAI and Oracle. It was announced by U.S. President Donald Trump in January 2025.
In September, the companies had announced plans for an additional potential expansion of 600 megawatts near the flagship Stargate site in Abilene, Texas.
That capacity will now be fulfilled at one of the other data centre campuses being built, a source â familiar with âthe matter told Reuters on Friday.
The Abilene site has eight buildings, which will be operated by Oracle Cloud Infrastructure, and â two of them are already up and running, the source added. OpenAI and Oracle's plan to develop another 4.5 gigawatts of data centre capacity remains on track.
Technology companies have been pouring billions of dollars into data centres to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power.
The collapsed talks between Oracle and OpenAI created an opening for Meta Platforms âto step in and consider leasing the planned expansion site in Abilene, Texas, from developer Crusoe, according to the Bloomberg News report. Nvidia helped facilitate the discussions.
Oracle â and OpenAI are using Nvidia's AI semiconductors at the Stargate site, and the chip designer stepped in to make sure its products, rather than those of competitor Advanced Micro Devices, would be used to power the expanded data centre, the report said.
Meta declined to comment when contacted by Reuters. OpenAI and Nvidia did not immediately respond to requests for comment.
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