OpenAI and Oracle have reportedly scrapped plans to expand the "Stargate" data center they had been pursuing in Texas. Delays in financing talks and shifting demand projections led to the halt of the additional expansion initially under consideration.
Bloomberg News reported on the 6th, citing multiple sources, that the two companies scrapped the expansion plan for the data center being built in Abilene, Texas. As a result, the 1.2GW (gigawatt) facility currently under construction will proceed as scheduled, but the plan to scale it to around 2GW has reportedly been dropped.
The Abilene data center is one of the key hubs of the $500 billion artificial intelligence (AI) infrastructure project "Stargate" that OpenAI, Oracle, and SoftBank unveiled at the White House early last year.
With the two companies withdrawing the expansion plan, attention is also turning to the fate of the Abilene site. In the industry, there is talk that the facility could pass to another AI player. In particular, with Meta reportedly having recently negotiated with developer Crusoe over moving in, it is emerging as the likely next user.
Nvidia was also reportedly providing behind-the-scenes support in the process. According to reports, to ensure that this data center uses its own AI chips rather than rival AMD's, Nvidia is said to have supported Meta's negotiations by advancing a $150 million deposit to Crusoe.
Discord surrounding the Stargate project had been raised before. U.S. IT outlet The Information previously reported that the three pillars—OpenAI, Oracle, and SoftBank—were facing difficulties pushing the project forward as they showed differences over role-sharing and the partnership structure.