Oracle, OpenAI Cancel Planned Expansion of Texas AI Data Center
Synopsis
Oracle and OpenAI have cancelled a planned expansion of their artificial intelligence data center campus in Abilene, Texas. The project would have added about 600 megawatts of computing capacity as part of the Stargate AI infrastructure initiative. Construction of the existing facilities will continue, while Oracle remains committed to supplying several gigawatts of AI data center capacity to support OpenAI’s computing requirements across the United States.
Oracle and OpenAI have cancelled plans to expand their artificial intelligence data center campus in Abilene, Texas. The proposed expansion would have added about 600 megawatts of computing capacity. Construction of the existing facilities continues as Oracle remains committed to providing large-scale AI infrastructure capacity for OpenAI across the United States.
Key Highlights
- Oracle and OpenAI cancelled a planned 600-megawatt expansion at the Abilene, Texas AI data center campus.
- The facility is part of the Stargate initiative focused on building large-scale AI computing infrastructure.
- The Abilene campus spans about 1,100 acres and includes eight planned data center buildings.
- Oracle still plans to provide roughly 4.5 gigawatts of AI data center capacity for OpenAI.
Oracle and OpenAI have cancelled a planned expansion of their artificial intelligence data centre campus in Abilene, Texas, according to a report by Bloomberg News citing people familiar with the matter.
The expansion would have added roughly 600 megawatts of computing capacity to the site, which forms part of the Stargate AI infrastructure initiative, a project aimed at building large data centres to support advanced artificial intelligence systems.
The Abilene campus spans around 1,100 acres and is being developed with infrastructure company Crusoe. Plans include eight data centre buildings, with two already operational, while the remaining facilities are still under construction.
Discussions over financing arrangements and evolving infrastructure needs led to the decision to drop the additional expansion, according to the report. Construction of the existing data centres at the site is continuing.
Part of Larger Stargate AI Infrastructure Plans
The Abilene project is among the first facilities under the Stargate initiative, a collaboration involving OpenAI, Oracle and SoftBank to build large-scale AI computing infrastructure in the United States.
The project aims to develop several gigawatts of computing capacity needed to train and operate advanced artificial intelligence models that require vast processing power.
Under existing agreements, Oracle is expected to deliver about 4.5 gigawatts of data centre capacity to OpenAI across multiple U.S. locations.
Following the cancellation of the expansion plan, Meta Platforms has explored leasing available space at the Abilene facility, according to the report. Chipmaker Nvidia was also linked to discussions related to the potential supply of AI processors for the site.
Meta declined to comment on the reported discussions, while OpenAI and Nvidia did not immediately respond to requests for comment.
Cloud Infrastructure Demand Continues to Grow
The development comes as technology companies increase spending on AI infrastructure to support generative AI systems and large language models.
Oracle has expanded investments in cloud infrastructure in recent years. The company reported $57.4 billion in revenue for fiscal year 2025, with a large portion coming from cloud services and support businesses. Cloud revenue growth has been driven partly by demand for computing capacity used in AI workloads.
Globally, investment in data centres is rising as companies in the United States, Europe and Asia expand computing infrastructure to support artificial intelligence applications.
FAQs
Q1. Why did Oracle and OpenAI cancel the Texas data center expansion?
The expansion was dropped after discussions related to financing and infrastructure requirements.
Q2. What is the Stargate AI infrastructure initiative?
Stargate is a project involving Oracle, OpenAI and SoftBank to build large AI data centers in the United States.
Q3. How large is the Abilene AI data center campus?
The campus spans about 1,100 acres and includes eight planned data center buildings, with two already operational.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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