Oracle and OpenAI drop plans for mega Stargate AI US data center

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By published

OpenAI to focus on other data center campuses

Bloomberg
(Image credit: OpenAI Stargate)
  • Stargate's Texas data center expansion to 2GW could be axed, capping it at 1.2GW
  • The Abilene campus has already faced a number of challenges
  • OpenAI may want to focus on accommodating newer chips

Oracle and OpenAI have reportedly (via Bloomberg) scrapped plans to expand the Abilene, Texas-based Stargate AI data center campus, which forms part of the $500 billion Stargate Project designed to grow US AI infrastructure.

Right now, Abilene is a two-building campus, but six further buildings are scheduled to come online this year bringing total capacity to an estimated 1.2GW.

However, plans for further expansions to reach around 2GW have now been scrapped, as OpenAI and Oracle have taken the decision not to expand its Texas campus further, however broader expansions aren't off the cards, with the companies instead targeting other US locations.

OpenAI's Stargate Project hits an expansion roadblock

Bloomberg says the companies reportedly faced financing and infrastructure challenges, with power delays holding current expansion plans back. OpenAI has also tweaked demand forecasts and revised its Stargate strategy.

A multi-day outage caused by extreme winter weather affecting the site's liquid cooling equipment also damaged relations between OpenAI and Crusoe, the site's infrastructure partner, which could have contributed to OpenAI's decision to focus on other campuses rather than continually expand this flagship site.

Additionally, while the Abilene campus is expected to run Nvidia Blackwell chips, OpenAI may be looking to diversify and/or modernize and build new campuses with other chips, including Nvidia's Vera Rubin.

In late 2025, OpenAI announced additional Stargate campuses in Shackelford County, Texas; Doña Ana County, New Mexico; Wisconsin, Lordstown, Ohio; and Milam County, Texas.

Reuters adds Meta may be in discussions with OpenAI to lease the cancelled expansion capacity at Abilene, but nothing has been confirmed on that front.

TechRadar Pro has asked OpenAI to confirm changes to its Stargate plans, but we did not receive an immediate response.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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