Oracle and OpenAI Scrap Texas Data Centre Expansion Plans
Oracle and OpenAI have abandoned their plans to expand a flagship artificial intelligence data centre in Texas. The decision was made due to stalled financing talks and OpenAI’s shifting infrastructure needs. The project, known as ‘Stargate’, was initially announced in January 2025 and was expected to be a $500 billion, 10-GW effort involving Oracle, OpenAI, and SoftBank.
The expansion was intended to add approximately 600 MW to the Abilene site, increasing its capacity from 1.2 GW to roughly 2 GW. However, the parties were unable to come to an agreement on financing terms, and OpenAI’s changing needs led to the cancellation of the expansion.
The financial impact on Oracle was modest, with the company’s shares falling approximately 1.1% on the news. The vacancy left by the cancelled expansion has opened up an opportunity for Meta Platforms to lease the space, with Nvidia having already paid a $150 million deposit to developer Crusoe to keep its GPUs on the site.
Despite the cancellation of the Texas expansion, the parties still intend to pursue the broader 4.5-GW ‘Stargate’ build-out elsewhere. The cancelled 600-MW add-on will be supplied by other Oracle sites.