Oracle and OpenAI have decided to abandon plans to expand a major artificial intelligence data center in Texas after negotiations stalled due to financing concerns and shifting infrastructure requirements from OpenAI. The development was first reported by Bloomberg News and cited people familiar with the matter.
The proposed expansion was intended to add around 600 megawatts of capacity near the companies’ flagship AI data center site in Abilene, Texas. The project is part of the broader Stargate initiative, a large-scale effort involving OpenAI, Oracle, and SoftBank to build advanced AI infrastructure across the United States.
Although the expansion in Abilene will not move forward, sources indicated that the additional computing capacity required by OpenAI will instead be provided through other data center campuses currently under development.
The Abilene facility already includes eight buildings that will be operated through Oracle Cloud Infrastructure, with two of those facilities currently operational.
The Stargate initiative itself is a massive AI infrastructure project aimed at building up to 10 gigawatts of computing capacity and attracting investments of up to $500 billion to support the rapidly growing demand for artificial intelligence services.
Industry sources also noted that the cancellation of the Abilene expansion could open the door for other technology companies to use the site. Meta Platforms is reportedly exploring the possibility of leasing the planned expansion space from developer Crusoe.
Companies such as Oracle and OpenAI have been investing heavily in data centers to power generative AI technologies like ChatGPT and Microsoft Copilot, which require vast computing resources to operate and scale.
Meta declined to comment on the reports, while OpenAI and Nvidia did not immediately respond to requests for comment regarding the development.
