Oracle and OpenAI have called off plans to expand a major artificial intelligence data center in Texas, ending a high-profile initiative that had been part of the ambitious Stargate project. The decision follows extended negotiations over financing and evolving operational needs for OpenAI, according to Bloomberg News, which first reported the development Friday.
Oracle and OpenAI have scrapped plans to expand a flagship AI data center in Texas after negotiations dragged over financing and OpenAI’s changing needs. https://t.co/aqWgnuSFVH
— Bloomberg (@business) March 6, 2026
The Stargate project, launched in January at an event hosted by U.S. President Donald Trump, aimed to mobilize up to $500 billion in private-sector investment to build infrastructure for AI. Oracle, OpenAI, and SoftBank Group are the main partners, with the initiative intended to establish multiple high-capacity AI data centers across the United States.
Construction at the Abilene, Texas site is still underway, and parts of the facility are already operational. However, the companies have opted not to pursue a large-scale expansion at the location, leaving the planned space potentially available for other tech companies. Bloomberg News reported that Meta Platforms is exploring the possibility of leasing the site, with Nvidia facilitating the discussions to ensure its semiconductors would power any expansion rather than those from rival Advanced Micro Devices.
Oracle and OpenAI continue to move forward with other parts of the Stargate project. In July, they announced plans to develop an additional 4.5 gigawatts of data center capacity, a deal that remains on track despite the Abilene expansion being canceled. The original Stargate blueprint included five new U.S. data centers: three with Oracle in Shackelford County, Texas, Dona Ana County, New Mexico, and an undisclosed Midwest site, along with two centers involving SoftBank in Lordstown, Ohio, and Milam County, Texas. These combined sites were projected to bring total capacity to nearly 7 gigawatts, with the overall initiative targeting 10 gigawatts.
OpenAI CEO Sam Altman emphasized the importance of infrastructure to AI development, stating that “AI can only fulfill its promise if we build the compute to power it.” The project had also promised substantial economic impact, including 25,000 onsite jobs across the planned sites. Nvidia has supported the initiative by supplying data center chips and investing up to $100 billion in OpenAI.
The Abilene expansion was initially envisioned as a central piece of the Stargate network. Its cancellation highlights the challenges large-scale AI infrastructure projects face, including complex financing arrangements and rapidly shifting technological requirements. While Oracle, OpenAI, and SoftBank remain committed to their broader AI ambitions, the decision to pause expansion in Texas signals a recalibration of the project in response to evolving market and operational conditions.
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